Finsbury posts growth as international sales fall
Total group sales for the company, including the discontinued Grain D'Or business, were £157.8M for the six months to December 30 2017. This represented a 0.7% increase in comparison with the previous year.
Sales from Finsbury’s continuing business grew by 2.5% to £144.8M, with its UK bakery division growing by 3.2%.
However, the group’s overseas division, its 50% owned European business, saw its sales drop by 2.1%. This was smaller than the fall in sales the company experienced in its last trading update in November – down 3.8%.
Reduced range of Christmas products
Overall growth was achieved despite a slightly reduced range of Christmas products, claimed Finsbury.
In the statement, Finsbury said: “During the period, the group maintained its long-term focus on upholding value for consumers and cost competitiveness for customers by investing a further £4.9M from its strong cashflow in initiatives which drive efficiency and productivity.
“Given the previously reported headwinds which are facing the industry, this proven strategy is focused on offsetting increases in the group’s cost base.
The manufacturer said its activities during the period positioned it well for a solid performance for the rest of the financial year and beyond.
‘Despite the market conditions’
“The board has built the group into a diverse multi-channel speciality bakery group. Following the exceptional growth and diversification over the prior years, the business is well placed to maintain its position, despite the market conditions,” added Finsbury.
“As such, the board believes it is well equipped to continue to deliver growth and improved shareholder value over the coming years.”
In its last trading update, Finsbury posted sales growth of 4% to £105.5M in the first four months of the 2017/18 financial year.
Meanwhile, this week Premier Foods posted sales growth of 4% in its third-quarter trading statement, boosted by its partnerships with Nissin Foods Group and Mondelēz International.
