Finsbury Food Group has said it is maintaining its focus on offsetting cost increases after reporting a 2.5% rise in revenue in the last six months of 2017.
The business, which supplies licensed and own-label cake, bread and morning goods to retail and foodservice customers, announced a 3.2% increase in sales from its UK bakery division, despite carrying a slightly reduced range of Christmas products.
Meanwhile, sales from its 50%-owned overseas division fell 2.1%. This is in contrast to Finsbury’s most recent full financial year, when declining prices contributed to a 1.4% drop in UK bakery turnover, while sales in the overseas division rose 17.3% – with 15.1% of this from exchange rates.
Finsbury said its results for the six months ended 30 December demonstrated the “positive impact” of its strategic diversification, and that its performance was in line with management expectations.
The company reported it had maintained its long-term focus on providing cost competitiveness for customers by investing a £4.9m in initiatives to drive efficiency and productivity.
“Given the previously reported headwinds facing the industry, this proven strategy is focused on offsetting increases in the group’s cost base,” stated the company.
Finsbury added that the business was positioned for a “solid performance” in the rest of the financial year and beyond.
“Following exceptional growth and diversification over the prior years, the business is well placed to maintain its position, despite the market conditions. As such, the board believes it is well equipped to continue to deliver growth and improved shareholder value over the coming years,” it stated.
Total group revenues including the discontinued Grain D’Or business rose 0.7% to £157.8m during the period. Last year, Finsbury confirmed it was to close premium baked goods business Grain D’Or, which employs 250 staff, as it had been “historically loss-making”.”
Recent Finsbury activity has included the launch of lower-sugar Disney cakes (pictured).