Finsbury’s sales rise in first quarter results

By James Ridler contact

- Last updated on GMT

Finsbury food Group posted a 4% rise in sales for the first four months of the 2017/18 financial year
Finsbury food Group posted a 4% rise in sales for the first four months of the 2017/18 financial year

Related tags: Finsbury food group, Revenue, Inflation

Speciality cake and bread manufacturer Finsbury Food Group’s sales grew by 4% to £105.5M in the first four months of the 2017/18 financial year.

Finsbury said the results reflected the company’s resilience, as the retail food market transitioned from deflationary to an inflationary environment.

The company said it had benefitted from the geographically diverse nature of its operations. Its UK Bakery division’s sales increased by 5% in comparison with last year.

Overseas sales fell

Finsbury’s overseas division sales – the group's 50% owned European business – fell by 3.8% when compared with the same period in the 2016/2017 financial year. 

In a statement, Finsbury said: “The multi-channel group has a strong track record of successfully navigating the previously reported head-winds which continue to face the entire industry.

“This resilience has been achieved by investing in initiatives which drive efficiency and productivity and therefore offset increases in the group’s cost base to ensure that Finsbury is well positioned to maintain value for consumers and to remain a competitive, low cost producer for customers.” 

In September, Finsbury posted flat sales of £314.3M for the year ending July 1 2017, while its profits rose 4.2% to £17.4M on a like-for-like basis.

Posted flat sales

Adjusted profit before tax was up 5.6% to £16.6M, compared with last year, while adjusted earnings before interest, depreciation and amortisation (EBITDA) grew 2.7% to £24.9M.

Commenting on the full-year results, chief executive John Duffy said they showed the company’s strong resilience to the current challenges in the industry – including higher commodity prices and labour costs.

Meanwhile, a combination of high commodity prices and labour costs are a “constant attrition”,hindering growth at Finsbury,​ according to group finance director Steve Boyd.

Finsbury’s first quarter 2018 results – at a glance

  • Total group sales revenues grew by 4% to £105.5M
  • UK Bakery division’s sales increased by 5% compared with last year
  • European sales fell by 3.8% compared with last year 

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