Finsbury profit rises 4% during ‘transformation’

Finsbury Food Group reported a 4% rise in operating profit

Speciality cake and bread manufacturer Finsbury Food Group reported a 4% rise in operating profit to £8.3M in its half-year trading update, as the business continues to transform “into a diverse, multi-channel” bakery group.

Profit before tax increased 5.3% to £7.9M, and adjusted diluted earnings per share were up 7.5% to 1p.

Finsbury Food Group said the rise in profits followed six of its eight sites supplying into the foodservice channel. This provided a “significantly broader speciality bakery range, from artisan and free-from breads, to snacking and sharing cakes”, it said.

‘Innovation and diversification’

Finsbury chief executive John Duffy said: “We have delivered a strong first-half performance, and this demonstrates the benefits of the group’s investment and strategy implemented over prior years. [It] reinforces our approach to innovation and diversification across our channels, customers and products.

“Our balance sheet remains solid, positioning the business well for future investment and the resulting benefits.”

The baker opened a new artisan bread facility over the 26 weeks to December 31, which boosted profit. It also secured the licence to manufacture a range of Mary Berry cakes. The range was expected to launch before the end of June.

Finsbury expected to launch

Finsbury expected to overcome any Brexit-related challenges, it said, including increased import costs due to the weak value of sterling.

Duffy said: “Well-documented market challenges persist, however the group has prepared well and is continuing to work hard to mitigate against these.

“Furthermore, the group’s track record of exceptional growth and diversification over the prior years illustrates that it has the right strategy in place to continue to deliver growth and improved shareholder value over the coming years.”

Meanwhile, in Finsbury’s last trading update, the group reported a 2.9% drop in sales. Its European business, however, reported 31.7% growth.

Related News

UK food manufacturers could be boosted after Brexit, said Rabobank

Brexit ‘may boost’ UK food manufacturers

Finsbury Food group has appointed Bob Beveridge as a non-executive director

Finsbury appoints non-executive director

Finsbury Food Group reported a 1.1% fall in like-for-like sales in constant currency

Finsbury sales drop 1.1% after industry deflation

Finsbury Food Group plans to close Grain D'Or, putting about 250 jobs at risk

Finsbury plans Grain D’Or closure: 250 jobs at risk

Cake and bread maker Finsbury posted sales and profit growth in a ‘challenging’ market

Finsbury posts growth in ‘challenging’ market

Finsbury unveils non-executive director changes

Finsbury unveils non-executive director changes

Finsbury has secured growth within a challenging market

Finsbury posts ‘positive’ results in challenging market

Finsbury reported UK bakery sales down 4%

Finsbury Food’s bakery division sales fall 4%

Finsbury's profits grew by 40% in the 53 weeks leading to July 2 2016

Finsbury profits grow by over £4M

Finsbury Food's UK sales fall 2.9%

Finsbury Food’s UK sales fall 2.9% as pound drops

Finsbury is confident of delivering strong profits for the year

Finsbury ‘confident’ on delivering strong profits

Related Products

See more related products

Submit a comment

Your comment has been saved

Post a comment

Please note that any information that you supply is protected by our Privacy and Cookie Policy. Access to all documents and request for further information are available to all users at no costs, In order to provide you with this free service, William Reed Business Media SAS does share your information with companies that have content on this site. When you access a document or request further information from this site, your information maybe shared with the owners of that document or information.