FDBusiness.com

Finsbury Food Group, a leading UK manufacturer of cake, bread and gluten free bakery goods, has increased first half sales revenues to £102 million, passing the £100 million in six months milestone for the first time. This represents organic growth of just over £14 million and an increase of 16% compared with the prior year.

The group experienced growth across each of its businesses. Both the group’s UK Cake and Bread and Free From businesses saw strong growth of 10% and 8% respectively. The combination of these businesses accounted for just over half the total group growth. Lightbody Europe, the group’s 50% owned joint venture export business, provided the balance with growth of 167%.

John Duffy, chief executive of Finsbury Food Group.

The trading environment remains very tough, with the challenges of a financially squeezed shopper, and stubbornly high commodity and input price inflation. However, Finsbury is continuing to invest in each of its businesses to further improve operating efficiencies, and drive growth through innovation to mitigate against these headwinds.

The high first half growth, delivered through both volume and price rises, complemented the group’s efficiency initiatives to largely offset year on year commodity inflation, although the operating margin percentage was slightly lower than prior year as a consequence.

Chief executive John Duffy comments: “Commodity inflation remains very high year on year and this continues to depress our already low operating margins. It is hard to forecast any improvement in this in the short term, however management and staff are committed to deliver on our twin strategy of growth and continued efficiency investment to ensure our continued success in this difficult market place.”