New product launches boost Finsbury Food sales
Cake manufacturer Finsbury Food reported a jump in sales in its interim results driven by new product launches as the company targets growing consumer trends.
The figures
Group revenue increased 4.7 per cent to £159.4m, with UK bakery sales jumping 5.8 per cent.
Profit before tax was up 17.9 per cent to £8.8m in the 26 weeks to 28 December.
Basic earnings per share increased 14 per cent to 4.9p and the company increased its interim dividend per share by six per cent to 1.23p.
Net debt fell £3.5m to £32.6m, the company said.
Why it’s interesting
During the period Finsbury launched a new range of Harry Potter cakes, gluten-free products and artisan sourdough bread as it attempted to tap into growing consumer trends.
The company also opened a new gluten free bakery in Poland to expand capacity in the continental market, and launched an integrated IT system in all manufacturing sites.
It also implemented a group-wide review and standardisation of bakery processes to improve quality and reduce waste.
What Finsbury said
Finsbury Food Group chief executive John Duffy said: “The first half was both a period of growth and of successful delivery against our strategic priorities. Revenue and profit were up, largely driven by organic performance in UK bakery as well as new business wins and the first full six-month contribution from our Free From business.We made encouraging progress in the optimisation of our cash flow in the period and reduced our debt levels, and are pleased to announce a further increase in the dividend.
“Moving into the second half, while the macroeconomic pressures affecting the industry look set to continue, our long-term, consistent and disciplined approach to investment and unwavering focus on driving increased productivity and efficiency across the group means Finsbury is now a much more resilient business and better equipped to weather difficult trading conditions.
“The broader channel, customer and product diversification we now have in the business gives us a solid platform on which to build and we continue to benefit from access to higher growth opportunities such as Free From and consumer niches such as artisan bread.”