UK cake maker Finsbury Food Group has pointed to more acquisitions and organic growth to drive its growth strategy after posting a jump in full-year profits and sales.
The firm posted a net profit of GBP6.6m (US$10.2m) compared with GBP4.9m for the period ended 27 June. Adjusted operating profit increased 61% to GBP12.4m. Sales grew 45.8% to GBP256.2m.
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The firm said its "core business continues to perform strongly" adding organic growth of 6% was "stimulated by increased investment in promotional campaigns, outstanding performance from licensed products and innovative methods of optimising the mix for customers".
In the early part of the financial year, Finsbury acquired Fletchers Group, which brought it Marks and Spencer as a customer while bolstering its presence in the foodservice arena. Finsbury's acquisition of Johnstone's Just Desserts this June took the company into the coffee shop cake market for the first time.
"Our growth strategy will continue to be delivered by a combination of organic growth and targeted acquisitions. Consolidating our market share in existing areas, such as celebration cakes and organic bread, as well as diversifying our existing product capability into new channels such as foodservice cake will deliver the organic growth. Further acquisitions will introduce new product, customer or channels diversification or accelerate market consolidation in our core product areas," the company said today (21 September).
Read our interview with Finsbury CEO John Duffy, published in October, when the deal for Fletchers was announced, here.
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