Cake Producer Finsbury Food Sees Growth in Revenue Despite Recessionary Environment
Sales in our smaller Bread & Free From division have continued to increase with like for like growth of 14%, after adjusting for acquisitions and the additional week of trading as referred to above.
30 Jul 2009 Finsbury Food Group plc, a leading manufacturer of cake, bread and morning goods, and a range of gluten free bakery products, is providing an update on trading in advance of entering its close period.
Group revenue for the last financial year to 30 June 2009 was up 8% compared with the previous year. The 'full year' effect of the businesses acquired during the course of the previous financial year accounts for 5% of this growth and just over 1% comes from it being a 53 week rather than 52 week year.
Sales in our smaller Bread & Free From division have continued to increase with like for like growth of 14%, after adjusting for acquisitions and the additional week of trading as referred to above. This very strong performance reflects our leading position in speciality breads and 'free from' products.
Sales in our largest division, Cake, are up 2% in absolute terms versus the prior year. On a like for like basis, sales were flat, continuing the first half trend. The rebalancing of customer ranges to offer more value choices to consumers during these recessionary times and increased promotional support to drive our brands and support consumer cake purchasing are the main reasons for this lower growth.
Our focus continues to be on reducing internal costs through integration and investment in acquired businesses and identifying and developing products to meet our consumers' needs, utilising our unique crafted baking experience.
Commenting, Chief Executive Martin Lightbody said:
"I am pleased to be able to report growth in revenue despite the recessionary environment in which we have operated and during what can only be described as a difficult trading period for the Group and a transitional year for a number of our operating subsidiaries.
"We remain committed to investing in our people, our facilities and our customers. As a Group we continue to focus on innovation and product quality to maintain our position as the UK's leading supplier of premium cakes."
