FIF.L Regulatory News (FIF)

Finsbury Food Group Plc

Pre-Close Trading Update and Notice of Results

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 financial year, ended 1 July 2023, prior to entering its close period.

The Group delivered a resilient full year performance despite the challenges of persistent significant cost inflation and macroeconomic uncertainty. Total Group sales of £413.7m, which includes the acquisition of Lees Foods Limited, increased by 16.0% versus the previous year, and 12.6% excluding Lees. The Group delivered a strong second half performance, with H2 revenues up 17.1% versus the corresponding period in the prior year. The growth in sales has been driven primarily by price and the incremental volume from Lees.

The Group's core division, UK Bakery, which includes Lees, delivered a robust performance with a 14.5% sales increase versus the prior year, this includes a continuation of the recovery in foodservice, up 25.1%, whilst the Group's Overseas division again performed strongly, delivering a 25.0% increase versus the prior year.

The Group's strategic acquisition of Lees further consolidated its position in the sweet treats sector and grew its manufacturing presence in Scotland. Lees has a well-established number one position in the UK meringue category and strong relationships across a high quality and diverse customer base. This provides Finsbury with the opportunity to build upon both businesses' existing retail relationships and unlock further commercial opportunities, including out of home eating. Since the acquisition, the performance of the Lees business has been in line with management's expectations.

The Company has continued to operate in an incredibly challenging environment as significant cost inflation and macroeconomic uncertainly has persisted throughout the period. However, the Company has, once again, successfully focused on managing these challenges through commercial terms, operational improvements and other supply chain and overhead initiatives. This focus will remain as further challenges are expected in the new financial year. 

Notice of results

The Group will announce its Full Year Results, for the twelve months ended 1 July 2023 on Tuesday 26 September 2023. Finsbury will host a webinar for analysts at 09:00am on 26 September 2023. Analysts wishing to attend the webinar should contact Alma PR via finsbury@almapr.co.uk.

The Company will also host a presentation for retail investors on the Investor Meet Company platform at 16:30pm GMT on Wednesday 27 September 2023. Shareholders who already follow Finsbury Food Group on the platform will automatically be invited; others are invited to register in advance via the following link:  https://www.investormeetcompany.com/finsbury-food-group-plc/register-investor

John Duffy, Chief Executive of Finsbury Food Group Plc, commented:

"The record revenue performance, which is in line with market expectations, that we have delivered this year is testament to the ongoing demand for our products and the resilience and determination of the business. Across the Group, we have seen a stable performance in UK retail, ongoing recovery in UK foodservice and continued growth in our Overseas division. I would like to thank the whole Finsbury team for their hard work and dedication during what has been a testing year.

Whilst the challenges that we have faced over the past few years have been significant, and are likely to remain in the short-term, Finsbury has proven itself to be an adaptable and resilient business. We continue to make good progress against our objectives, based around our three strategic pillars of Excellence, Growth and Responsibility and underpinned by our Operating Principles, and we remain well placed to deliver on our long-term growth ambitions." 

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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, had sales in the financial year ending 2 July 2022 exceeding £356 million.

· The Company's bakery product range is comprehensive and includes:

· Large premium and celebration cakes.

· Small snacking cake formats such as cake slices and bites.

· 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.

· 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 £1.1 billion (source: IRI 52 w/e 17 June 2023). The retail bread and morning goods market has a value of £5.9 billion (source: Kantar Worldpanel 52 w/e 16 April 2023). The retail Free From cake market is valued at £65.6 million (source: Kantar Worldpanel 52 w/e 16 April 2023). The retail Free From bread and morning goods market is valued at £178.3 million (source: Kantar Worldpanel 52 w/e 16 April 2023).

· The Company comprises a core UK Bakery division and an Overseas division:

· The UK Bakery division has manufacturing sites in Cardiff, East Kilbride, Hamilton, Salisbury, Sheffield, Manchester, Pontypool and now Coatbridge.

· The Overseas division comprises the Company's 85% owned company, Lightbody-Stretz Limited, which supplies and distributes the Group's UK-manufactured products and third-party products, in Europe, and the Company's manufacturing facilities in Rybarzowice and Żywiec in Poland.