FDBusiness.com

Helped by a return to growth in its cake division, UK bakery company Finsbury Food Group has increased revenue by 12.6% to £189.6 million and underlying profit before tax by 8.3% to £5.8 million for the year ended July 2nd 2011. Sales in the cake division rose 12.1% to £139.6 million and sales in the bread and free from division advanced 14.2% to £50.0 million. Finsbury Food Group also managed to reduce net debt by 10.4% to £32.7 million.

Escalating commodity prices for sugar, flour and butter impacted on operating margins but this was largely offset by rising sales together with savings from efficiency projects.

John Duffy, chief executive of Finsbury Food Group.

”We are pleased to have returned to organic growth, an important milestone for the group,” comments John Duffy, chief executive of Finsbury Food Group. “We are emerging from a complex and exhaustive programme of reorganisation and despite the macro economic factors continuing to buffet the business and our customers, our structured approach has clearly started to bear fruit. The difficulties we face should not be underestimated, the global commodities bubble has exerted unprecedented pressure on margins. Prices for butter, sugar and wheat have soared over the last 18 months. Keeping things affordable for customers is essential.”

He adds: “I am delighted that we have succeeded in steering the group through another demanding year. The reality is that testing times still lie in wait. However, our distinctive range of products, commitment to value and robust performance in a testing climate bode well for the challenge ahead.”