Finsbury Foods delivers 'robust' H1 performance

Baked goods manufacturer Finsbury Foods said on Thursday that it had delivered "a robust H1 performance" despite external challenges being faced by the company.

Finsbury Foods said total sales were 8.9% year-on-year and 4,4% on a two-year basis at £166.5m, driven by "a stable performance" in UK retail, up +1.5%, a continuation of the robust recovery in foodservice, up 25.9%, and a 32.3% increase in the group's overseas division.

The AIM-listed firm stated that throughout the first half, it had faced "persistent pressure" from input cost inflation, staff shortages and other supply chain disruptions.

However, Finsbury said it had been able to "successfully mitigate the impact of these pressures" so far via commercial negotiations, operational improvements and other supply chain initiatives. Further inflationary cost pressures were expected in the second half.

"In addition, the impact of Omicron on foodservice consumer demand and production disruption due to staff members required to self-isolate remains unpredictable, but the company has a successful track record of navigating challenging market conditions, and will continue to use its experience as it works through the second half," said the firm.

As of 0910 GMT, Finsbury Food shares were down 1.01% at 98.0p.