UK cake maker Finsbury Food Group said it foresees tough trading over the next 12 to 18 months after higher wheat, dairy and egg costs ate into margins.
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However, the company said that, despite a dramatic increase in commodity prices, strict overhead cost controls enabled it to post strong sales and growth across all its units.
Finsbury said the underlying fundamentals of the group remained strong and while it expects growth in earnings during the coming twelve months, it is likely to be slower due to inflationary pressures and the uncertainty in consumer spending patterns.
“Our sales growth prospects remain very positive over the coming year with major range relaunches either in progress or planned with all of our major customers,” said chief executive Dave Brooks. “We are also the beneficiaries of some very strong licensing partnerships with major brands such as Weight Watchers, Thorntons, Disney and Nestle, all of which can offer something new in our core areas.”
The company said it will continue to use its flexibility to be prepared to move with the markets as the situation unfolds.
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