25 Nov 2009 07:00
Date: 25 November 2009
On behalf of: Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group')
Embargoed until: 0700hrs
Finsbury Food Group plc
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 for the first 17 weeks of the current financial year ending 30 June 2010.
Our Bread and Free From businesses have continued to achieve double digit growth year on year. The Goswell acquisition made at the end of the last financial year has increased sales by 11%. On a like for like basis, excluding Goswell, revenue has increased by 8%.
However, sales in our larger Cake business have declined by 6% in value, slightly ahead of the overall cake market which has declined by nearly 4% over the last 12 weeks. In addition to increased promotional investment, we have exited some low margin products as we have integrated our cake businesses.
As a result, revenue for the Group has fallen year on year with sales for the 17 weeks to the end of October 2% behind the corresponding period last year, 4% behind on a like for like basis excluding Goswell.
The integration of our businesses has widely improved the Group's efficiency, product quality, and customer service and as a result, Finsbury remains a strong player in its market place and enjoys a loyal and diversified customer base. We will continue to adjust to market and customer demand by utilising our highly skilled, innovative and flexible production capability. Our strong management teams will continue to optimise the Group's strengths throughout this challenging period.
Adding to this, John Duffy, Chief Executive of Finsbury, commented:
"Consumer behaviour is still being affected by the recession and premium range sales have been impacted in the short term. The economic environment remains challenging and uncertainty around input price inflation remains high. We continue to focus on integrating our businesses to improve efficiency and operating margins whilst gaining an improved understanding of our consumers."
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For further information:
Finsbury Food Group Plc www.finsburyfoods.co.uk
John Duffy (Chief Executive)
Lisa Morgan (Group Finance Director) 07771 712 720
Panmure Gordon 020 7459 3600
Andrew Potts/Ashton Clanfield/Callum Stewart
Redleaf Communications finsbury@redleafpr.com
Emma Kane/Rebecca Sanders-Hewett/
Anna Dunkin 020 7566 6700