Finsbury Food sees FY profits in line with market expectations
(ShareCast News) - Finsbury Food said on Monday that it is confident of delivering full-year profits in line with market expectations.
The AIM-listed speciality bakery manufacturer of cake, bread and morning goods, said total company sales revenue grew to £314.3m for the year to 1 July, up 0.3% like-for-like on the previous year. On a constant currency basis, revenues were down 1.1% like-for-like on the year before.
Against a backdrop of UK retail food market deflation in the period, the UK bakery division declined by 1.4% on a like-for-like basis. The decline reduced from 2.9% in the first half to an increase of 0.1% in the second, with the second half benefitting from a growth in sales revenues.
In addition, the company said trading in the UK bakery division was stronger in the second half of the year against the full financial year ended 1 July 2016 as it entered a period of price inflation.
Meanwhile, the group's 50%-owned European business grew by 17.3% as a positive performance and exchange rate impact mitigated the effect of the euro ion the UK baker business.
Finsbury said that as detailed in its interim results, the scale industry-wide challenges has necessitated price recovery and as such it has had productive discussions with its customers during the period. It continues monitor and review the need for further action in light of unusual cost spikes, as is currently well documented to be the case with butter.
Chief executive John Duffy said: "The hard work undertaken in prior periods has ensured that we have maintained our course, with the benefits of having a diversified business across channels and geography coming to the fore. Considering the pressures the industry faces, we are very pleased to have grown revenue and are confident that the group is well positioned to maintain its strong market position and continue to deliver shareholder returns."
At 0950 BST, the shares were down 2.1% to 113.52p.