Finsbury Food H1 results: revenue and profits rise

Finsbury Food Group has reported a 4.7% hike in operating profits in the 26 weeks ending 30 December 2017.

Revenue at the business, which supplies own-label and licensed baked goods, has risen 0.7% to £157.8m, with the company highlighting that revenue from foodservice bread and morning goods has risen 8.2%.

Like-for-like revenue, excluding the Grain D’Or bakery recently closed by Finsbury, rose 2.5% to £144.8m. The company said most former Grain D’Or employees had found alternative external employment.

Finsbury reported a group operating profit margin of 5.5%, up from 5.3% in the same period a year ago, despite what chief executive John Duffy described as a “sustained period of market-wide headwinds”.

“The investment into the business that we have implemented over this and previous years, alongside a focus on operational excellence, has positioned us well and enabled us to continue to deliver robust results,” he added.

Investment has included a new automated whole cake line at its Cardiff site, and a new artisan bread bakery at its Salisbury facility. The company has also purchased the freehold property of its celebration cakes factory in Scotland.

Finsbury this year agreed a £45m revolving credit facility that it said gave it increased capacity to explore future growth opportunities and support its long-term investment strategy.

Commenting on the coming period, Duffy said: "The headwinds will persist but we are determined to deliver against our strategic objectives and continue to drive growth both organically and through acquisition.

“With our resilient and diversified group, by category, channel and geography, we are confident that we will continue to deliver steady progress in the period ahead."

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