FIF24 Nov 2011 19:18
Trading Update
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.