SUBSCRIBE

Inside food & drink manufacturing

Headlines > Business News

Read more breaking news

 

 

Finsbury profit rises 4% during ‘transformation’

Post a comment
Matt Atherton

By Matt Atherton+

20-Mar-2017
Last updated on 22-Mar-2017 at 09:15 GMT2017-03-22T09:15:54Z

Finsbury Food Group reported a 4% rise in operating profit
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.

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.