15 Jul 2019 07:00
Date: | 15 July 2019 | |
On behalf of: | Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group') | |
For immediate release |
| |
Finsbury Food Group plc
Pre-Close Trading Statement
Finsbury Food Group Plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is today providing an update on trading for the full financial year, ended 29 June 2019, prior to entering its close period.
On a like for like* basis, Group sales revenue increased 3.1% to £299.3m, with sales in the second half increasing 5.7% against the equivalent period in the prior year. The stronger performance in the second half was driven by organic growth, price recovery and the previously communicated new business wins. Including closed and acquired businesses, Group sales increased by 3.8% to £315.3m, with sales in the second half increasing by 11.7%.
In the Group's core division, UK Bakery, like for like sales grew by 4.7%, which is ahead of the wider market and was achieved despite the ongoing malaise in consumer confidence and the broader macro environment. The Group's Overseas division declined by 9.8% on a like for like basis but grew by 13.2% when including the acquired Ultrapharm business.
The Group is confident of delivering profits in line with market expectations for the full financial year ended 29 June 2019.
The Group has invested in new capacity in its Free From bakery manufacturer, Ultrapharm. A new bakery in Poland has been commissioned and is nearly complete, alongside investment in additional resources and skills to deliver a stronger platform for anticipated future growth.
Whilst elements of cost inflation are moderating following spikes in recent years, inflationary pressures remain. As a diverse multi-channel speciality bakery group with an ongoing investment programme, Finsbury is well placed to continue to drive efficiency, deliver innovation and maintain its leading position in the market, despite the wider market conditions.
*like for like revenue is the revenue from operations excluding the revenue from the closed bakeries and acquired businesses.
John Duffy, Chief Executive of Finsbury Food Group plc, commented:
"We have navigated through an intense period of cost inflation and broader macro issues, and as such, we are very pleased to be reporting a strong return to growth in the second half, delivering a performance that is in line with market expectations.
We look forward to reaping the benefits of the investment in Ultrapharm, an acquisition that has further diversified the Group into higher growth markets. As a focused and diversified Group, we remain optimistic about the growth prospects ahead."
ENDS
Contact:
Finsbury Food Group John Duffy (Chief Executive) Steve Boyd (Finance Director)
| www.finsburyfoods.co.uk | 029 20 357 500 |
Cenkos Securities Max Hartley (Corporate Finance)
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Alma PR Rebecca Sanders-Hewett Sam Modlin Hilary Buchanan | finsbury@almapr.co.uk | 020 3405 0205 |
Notes to editors:
· Finsbury Food Group Plc (AIM: FIF) is a leading UK manufacturer of cake and bread bakery goods, supplying a broad range of blue chip customers within both the grocery retail and 'out of home eating' foodservice sectors including major multiples and leading foodservice providers.
· The Company is one of the largest speciality bakery groups in the UK and, with its Overseas division, has sales in the financial year ending 30 June 2018 exceeding £300m.
· The Company's bakery product range is comprehensive and includes:
o Large premium and celebration cakes.
o Small snacking cake formats such as cake slices and bites.
o Artisan, healthy lifestyle and organic breads through to rolls, muffins (sweet and savoury) and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.
o Gluten Free bread, morning goods and cake ranges.
· The Company is one of the largest ambient cake manufacturers in the UK, a market valued at over £965 million (source: IRI, 52 w/e 22nd June 2019). The retail bread and morning goods market has a value of £4.5 billion (source: Kantar Worldpanel 52 w/e 21st April 2019). The retail Free From Cake market is valued at £49.5 million (source: Kantar Worldpanel 52 w/e 24th March 2019). The retail Free From bread & morning goods market is valued at £125.3 million (source: Kantar Worldpanel 52 w/e 21st April 2019). The UK Out of Home sector Foodservice Bakery sector is worth approximately £746 million per annum (source: derived from MCA data for 52 weeks to 31st March 2019). The UK foodservice cake and sweet morning goods bakery sector is worth approximately £917 million per annum (UK foodservice data derived from MCA data for 52 weeks to 31st March 2019).
· The Company comprises a core UK Bakery division and an Overseas division:
o The UK Bakery division has manufacturing sites in Cardiff, East Kilbride, Hamilton, Salisbury, Sheffield, and Manchester.
o The Overseas division comprises the Company's 50% owned company, Lightbody Stretz Ltd, which supplies and distributes the Group's UK-manufactured products and third party products, primarily to Europe.
· Since the year end date of 30th June 2018, the Company completed the acquisition of Free From baker Ultrapharm, giving the Group a significant opportunity to access an exciting and high growth marketplace and manufacturing facilities in Pontypool in the UK and in Zywiec, Poland.