Finsbury Food beefs up revenue

Cake and bread maker Finsbury Food said group revenues continued to grow strongly to £68.3m in the first four months of the new financial year after solid progress at all of its divisions.

This represents organic growth of just over £10m, an increase of 17% over the previous year, the group explained.

Finsbury saw strong growth at is UK Cake, Bread and Free From businesses. All of them delivered just over half the total group growth. Lightbody Europe, the group's 50% owned joint venture export business, provided the balance, it said.

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Howeer the group expects year on year growth rates to moderate, once it reaches the anniversary of last year's new product launches and increased promotional activity levels.

Commenting on the consumer climate, Finsbury said, "The operating environment remains particularly challenging. Shopper behaviour continues to be affected by the economic uncertainty, and we have experienced ingredient and input cost inflation year on year."

However higher sales, as well as cost initiatives, have partially offset this cost inflation, although operating margins are lower year on year.

Chief Executive John Duffy commented, "The group has continued to grow and improve despite this most difficult of trading environments, which is encouraging."

"We continue to innovate and adapt our quality product ranges so that they remain affordable for shoppers and consequently, their popularity has proved enduring. Whilst a difficult balancing act, the management and staff continue to improve and optimise the Group's resilient performance despite these headwinds."

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