UK: Costs hit Finsbury Food Group margins
By Sam Webb | 24 November 2011
 |
Finsbury has announced increased sales in a trading update |
UK cake and bread manufacturer Finsbury Food Group has seen margins squeezed by input costs in the first four months of its financial year.
At its AGM today (24 November), chairman Martin Lightbody said sales for the four months to 2 November had increased 17% to GBP68.3m (US$106m).
However, Lightbody called the economic environment "challenging" and said Finsbury has been hit by high raw material prices. Sales and efficiency initiatives had partially offset the cost but he admitted operating margins were "lower" year-on-year.
Finsbury's sales growth was split evenly between the UK cake, bread and free-from businesses and Lightbody Europe, Finsbury's 50%-owned joint venture export business, Lightbody said.
However, the company forecasts year-on-year growth will slow due to increased promotional activity levels and a year passing since 2010's product launches.
Chief executive John Duffy said: "The group has continued to grow and improve despite this most difficult of trading environments, which is encouraging. We continue to innovate and adapt our quality product ranges so that they remain affordable for shoppers and consequently, their popularity has proved enduring.
"While a difficult balancing act, the management and staff continue to improve and optimise the group's resilient performance despite these headwinds."
In September, Finsbury, which makes cakes under licence for companies like Nestle and Thorntons, reported a 37.9% increase in annual profit after tax to GBP4.5m. Sales grew 12.6% to GBP189.6m. It said, however, that clawing back costs in the next year was "imperative".
Sectors: Bakery, Confectionery, Financials, Private label
Companies: Finsbury Food Group, Nestle, Thorntons
View next/previous articles
24 Nov 2011 -
Currently reading -
UK: Costs hit Finsbury Food Group margins
24 Nov 2011 -
24 Nov 2011 -
Related research
Datamonitor's Nestle Purina PetCare Company - SWOT Analysis company profile is the essential source for top-level company data and information. Nestle Purina PetCare Company - SWOT Analysis examines the company’s key business structure and operations...
Food Allergy and Intolerance Products
This report analyzes the worldwide markets for Food Allergy and Intolerance Products in US$ Million by the following product segments: Gluten-free, and Others. The report provides separate comprehensive analytics for the US, Europe, and Rest of World...
Related articles
Focus: FDA restates intentions on nutritional food labelling
The FDA's recently announced 2012-2016 strategic plan includes specific reference to both front-of-pack nutritional labelling and reform of the nutrition facts panel. Details of how the FDA plans to proceed remain sketchy, Ben Cooper writes, but the fact that these two items are firmly on the policy agenda ensures a lively debate will continue and possibly intensify during the coming few years.
In the spotlight: Hard work ahead for new Weetabix owner Bright Food
Ambitious Bright Food, the Chinese state-backed food group, missed out on previous Western targets like United Biscuits and Yoplait but it has planted a flag in Europe with the acquisition of a majority stake in UK cereal manufacturer Weetabix. The deal could give Bright Food some Western expertise to apply to its domestic business but, as Dean Best reports, its faces a challenge in building the brand in China, where it remains early days for breakfast cereal.
There are currently no comments on this article
Be the first to comment on this article