Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is today providing an update on trading for the full financial year, ended 30th June 2012, prior to entering its closed period.
We are pleased to report that the Group has delivered another year of strong organic sales growth. This growth was seen across both of the Finsbury Group businesses. Total Group sales of £207m for the full year were up 9.4%, some £17.8m, compared to the previous year. As predicted, growth levels moderated in the second half as we reached the anniversary of last years product launches and contract gains.
Sales in the larger Cake division are up 9.2% versus last year to £152m. Both UK market and export sales through our Lightbody Europe 50% JV business have shown growth with the latter providing half of the Cake growth.
Sales in the Bread and Free From division continued to deliver high levels of growth, up 10% on the prior year to £55m, driven by strong growth in the fresh gluten free market and Vogel's brand growth in the speciality bread market.
Our consumer markets and operating environment have continued to be challenging throughout 2011/12. Key core ingredient inflation on items such as sugar and egg in particular has necessitated price rises, continued investment and efficiency initiatives across the Group to minimise the impact on margins.
We continue to trade in line with expectations and banking covenants.
Commenting on the results, John Duffy, Chief Executive of Finsbury Food Group plc, said:
"We are pleased to be reporting further growth across each of the Finsbury businesses. This is particularly noteworthy considering the pressure we are seeing from high commodity and input price inflation. With this in mind, we are focused on driving both efficiency and productivity to mitigate against the negative margin impact of these pressures, and believe that the measures we are taking will continue to bear fruit.
"Our priority is to further invest in the business to ensure that the growth momentum continues and look forward to both driving further shareholder value and reaching our next sales milestone."
Finsbury Food Group plc (AIM:FIF), a leading manufacturer of cake, bread and morning goods, today announces its interim results for the six months ended 31 December 2011.
§ Group revenue up £14m (16%) to £102 million (H1 2011: £87.8 million) § Profit before tax up £0.3m to £2.2 million (H1 2011: £1.9 million) § Sales in the Cake division up 19% to £76.4 million (H1 2011: £64.2 million) § Sales in the Bread & Free From division up 8% to £25.6 million (H1 2011: £23.6 million) § Net debt down 5% to £34.8 million (H1 2011: £36.8 million)
§ Navigated through significant raw material and cost inflation with minimal margin drop from 3.6% (H1: 2011) to 3.4% § Key licenses signed for Cake business § Significant developments in Free From including new Genius products § Continued development delivering growth in brands, such as Vogel's
Extract from Half year. Total Group sales revenues continued to grow significantly reaching £102m, passing the £100m in six months milestone for the first time. This represents organic growth of just over £14m and an increase of 16% compared with the prior year.
The Group experienced growth across each of the Finsbury businesses. Both the UK Cake and Bread and Free From businesses saw strong growth of 10% and 8% respectively. The combination of these businesses accounted for just over half the total Group growth. Lightbody Europe, the Group's 50% owned joint venture export business, provided the balance with growth of 167%. As communicated previously, the second half and consequently full year growth rates will not be as high as the first half as the Group has now reached the anniversary of last year's new product launches, European contract gains and increased promotional activity levels
John Duffy, Chief Executive commented: "The Group has continued to grow and improve despite this most difficult of trading environments, which is encouraging. We continue to innovate and adapt our quality product ranges so that they remain affordable for shoppers and consequently, their popularity has proved enduring. Whilst a difficult balancing act, the management and staff continue to improve and optimise the Group's resilient performance despite these headwinds."
Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and morning goods, is today holding its Annual General Meeting. At the meeting the Chairman will issue the following update on trading.
In the first four months of the new financial year, total Group sales revenues continued to grow strongly to £68.3m. This represents organic growth of just over £10m, an increase of 17% versus prior year.
The UK Cake, Bread and Free From businesses all grew strongly delivering just over half the total Group growth whilst Lightbody Europe (LBE), the Group's 50% owned joint venture export business, provided the balance. Year on year growth rates are expected to moderate, once we reach the anniversary of last year's new product launches and increased promotional activity levels.
The operating environment remains particularly challenging. Shopper behaviour continues to be affected by the economic uncertainty, and we have experienced ingredient and input cost inflation year on year. Higher sales, resulting from volume growth and price increases, assisted by further internal efficiency initiatives, have partially offset this cost inflation, although operating margins are lower year on year.
Datafeed and UK data supplied by NETbuilder and Interactive Data.
While London South East do their best to maintain the high quality of the information displayed on this site,
we cannot be held responsible for any loss due to incorrect information found here. All information is provided free of charge, 'as-is', and you use it at your own risk!
The contents of all 'Chat' messages should not be construed as advice and represent the opinions of the authors, not those of London South East Limited, or its affiliates.
London South East does not authorise or approve this content, and reserves the right to remove items at its discretion.