UK cake maker Finsbury Food Group has seen its annual sales propelled by new product development and contract gains in the back half of last year.
The company booked a 9.4% increase in sales for the year to 30 June, which rose to GBP207m (US$321m). Cake sales, including cakes exported to Europe through Lightbody Europe, rose 9.2% while bread sales were up 10%.
However, Finsbury said its growth rates slowed in the second half as it lapped last year's product launches and contract wins. The group also revealed it has looked to offset commodity price increases through price hikes and cost controls.
Finsbury Food Group plc
Pre Close Statement
Finsbury Food Group plc (AIM: FIF), a leading manufacturer of cake, bread and gluten free bakery goods, is today providing an update on trading for the full financial year, ended 30th June 2012, prior to entering its closed period.
We are pleased to report that the Group has delivered another year of strong organic sales growth. This growth was seen across both of the Finsbury Group businesses. Total Group sales of £207m for the full year were up 9.4%, some £17.8m, compared to the previous year. As predicted, growth levels moderated in the second half as we reached the anniversary of last years product launches and contract gains.
Sales in the larger Cake division are up 9.2% versus last year to £152m. Both UK market and export sales through our Lightbody Europe 50% JV business have shown growth with the latter providing half of the Cake growth.
Our consumer markets and operating environment have continued to be challenging throughout 2011/12. Key core ingredient inflation on items such as sugar and egg in particular has necessitated price rises, continued investment and efficiency initiatives across the Group to minimise the impact on margins.
We continue to trade in line with expectations and banking covenants.
John Duffy, Chief Executive commented:
"The Group has come a long way to achieve annual sales of over £200m for the first time despite very challenging market conditions. This is testament to the hard work and resilience of the management teams and the quality and breadth of products they produce. With no let up in market conditions anticipated we continue to invest in growth areas and improved efficiency to maintain this success."
