Proven success: Finsbury Food hails bread sales for rising revenue
Thorntons maker Finsbury Food credited rising bread sales for an annual 3.8 per cent in group sales to £315.3m in the 12 months to the end of June.
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Cake, bread and pastries pushed the Aim-listed baker higher, which saw a three per cent hike in like-for-like sales revenue to £299.3m compared to the previous year.
Second half like-for-like sales rose 5.7 per cent year on year, while group sales soared almost 12 per cent in the last six months.
“We have navigated through an intense period of cost inflation and broader macro issues,” chief executive John Duffy said.
“As such, we are very pleased to be reporting a strong return to growth in the second half, delivering a performance that is in line with market expectations.”
Finsbury’s core UK bakery division, which produces bread brands such as Vogel’s and Cranks, posted like-for-like sales growth of 4.7 per cent, beating the market average despite widespread consumer uncertainty.
However, the firm’s overseas division suffered a 10 per cent drop in like-for-like sales. Factoring in the 2018 £17m acquisition of free-from baker Ultrapharm, however, overseas revenue rose 13.2 per cent.
Duffy added that Finsbury is investing in building new capacity for Ultrapharm, starting with a new bakery in Poland as well as bolstering skills and resources.
“We look forward to reaping the benefits of the investment in Ultrapharm, an acquisition that has further diversified the group into higher growth markets,” he said.
“As a focused and diversified group, we remain optimistic about the growth prospects ahead.”
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Finsbury added that it is confident of delivering on profit expectations for the full-year.
Main image credit: Finsbury Food