UK: Record sales boost profits at cake firm Finsbury
- FY profits up
- Sales surpass GBP200m for first time
- Growth across group
Finsbury said it saw growth across the business
UK cake manufacturer Finsbury Food Group today (24 September) reported an increase in full-year profits after seeing sales exceed GBP200m (US$324.3m) for the first time.
The company booked profit after tax of GBP4.9m for the year to the end of June, up from GBP4.4m a year ago.
Adjusted pre-tax profits, which exclude factors including Finsbury's pension scheme and share option charges, climbed 11.6% to GBP6.5m.
Finsbury, which produces private-label cakes and products under licence for the likes of Thorntons and Nestle, reported group revenue of GBP207.4m and pointed to "significant organic growth" across all its divisions.
Chairman Martin Lightbody said Finsbury's performance was "clearly encouraging". However, he added: "Satisfaction must be tempered with concern at events beyond our power to influence. Input price inflation continues to impact on operating margins with prices for commodities such as sugar and eggs moving steadily upwards. The situation for consumers shows little sign of improvement. Our customers are faced with shrinking disposable incomes and the very real dilemma of trying to make ends meet while buying good food."
24 September 2012
On behalf of:
Finsbury Food Group plc ('Finsbury', 'the Company' or 'the Group')
Embargoed until: 0700hrs
Finsbury Food Group plc
Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is pleased to announce its preliminary results for the 52 weeks ended 30 June 2012.
§ Group revenue up 9.4% to £207.4 million (2011: £189.6 million)
§ Adjusted* profit before tax up 11.6% to £6.5 million (2011: £5.8 million)
§ Cake division continues to grow, up 9.2% to £152.4 million (2011: £139.6 million) from both UK and export markets
§ Bread and Free From division sales growth of 10.0% to £54.9 million (2011: £50.0 million) driven by strong growth in the fresh gluten free market, Vogel's brand growth and fresh Free From own label in the speciality bread market.
§ Adjusted* diluted EPS 7.8p (2011: 7.1p)
§ Total net debt including deferred consideration reduced by 8.6% to £33.9 million (2011: £37.1 million)
§ Significant organic growth across all divisions, notwithstanding the impact of commodity and cost inflation
§ Continued expansion of our 50% owned subsidiary Lightbody Europe
§ Creation of fresh Free From own-branding opportunities with major supermarket retailers
§ Launch of Heston's Hot Cross buns with Waitrose, supported by Easter TV marketing campaign
*These figures have been adjusted to eliminate the impact of certain charges required by IFRS and significant non-recurring items for the 52 weeks ended 30 June 2012 and ended 2 July 2011. Refer to the analysis in the Business Review for further details.
Commenting on the results, John Duffy, Chief Executive of Finsbury Food Group plc, said:
"I am delighted to report such a noteworthy set of results, both due to the significant revenue milestone accomplished this year and the increase in both top and bottom line growth in the period, despite continued market pressures.
"The formula we have pursued has and will continue to remain steadfast, to maintain the pattern of growth in profitability, underpinned by a commitment to meeting the needs of our customers and consumers. I am confident that the pragmatic foundations so carefully laid down in recent years are set to produce enduring benefits for both the business and our shareholders."
Original source: Finsbury Food Group
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