Finsbury Food Group has seen group revenue rise by 12%, according to its latest trading update. However, it still predicts operating margins will be 1-2% lower than last year.
Within its largest division, the bakery manufacturer has seen cake sales increase by 4% in absolute terms, but like-for-like growth has been “flat”. According to the statement released: “Growth in this part of the business has been impacted by a reduction in sales of seasonal products in our range.”Sales in its smaller Bread and Free From divisions experienced like-for-like growth of 16% and 23% respectively.
The figures include an additional week’s sales, due to the current financial year covering 53, rather than 52 weeks. The additional sales in this week accounted for a further 3% growth in group sales.
The bread, cake and morning goods manufacturer said it is continuing to invest heavily in promotional activity and has experienced an increase in demand for products under its licensed brands, notably Thorntons and WeightWatchers.