Finsbury Food Group has posted an ‘encouraging’ first half performance with double-digit revenue growth despite inflationary pressures.
The bakery manufacturer, which produces cake, bread, and morning goods for retail and foodservice channels, reported revenues were up 14.7% to £190.9m for the six months to 31 December 2022.
Revenue in Finsbury’s UK foodservice division rose 22%, UK retail was up 10.9% and the overseas division saw growth of 23.4%. This growth was driven by price increases to recover input cost inflation as volumes were broadly flat. Operating profit remained flat at £6.5m.
Finsbury also continued to enhance product capability and capacity with a new buns and rolls line installed at its Sheffield factory during the period.
Finsbury CEO John Duffy said the manufacturer had once again delivered a “robust” performance.
“We have seen a stable performance in UK retail, ongoing recovery in UK foodservice and continued growth in our overseas division all despite the challenges of continued significant input cost inflation and falling consumer confidence,” he added.
“Looking ahead, we expect to continue to navigate a challenging macro environment as inflationary pressures look set to persist with the short-term outlook remaining difficult to predict. However, Finsbury is now a nimble and adaptable group and I am confident that we remain well placed to continue successfully executing on our strategy.”
Duffy noted that the business had made good progress against objectives based around its three strategic pillars of excellence, growth, and responsibility.
The firm also has a ‘carefully calibrated’ merger and acquisition strategy which recently resulted in it buying snowballs, meringues and teacakes supplier Lees Foods for £5.7m. This, Duffy noted, enables Finsbury to further develop its position in the sweet treats sector and grow its manufacturing presence in Scotland.