REG - Finsbury Food Group - Pre-Close Trading Update and Notice of Results

Finsbury FoodAnnouncement

20/07/2022 07:00

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RNS Number : 0292T  Finsbury Food Group PLC  20 July 2022

 

 Date:          20 July 2022
 On behalf of:  Finsbury Food Group Plc ('Finsbury', 'the Company' or 'the Group')

 

 

Finsbury Food Group Plc

Pre-Close Trading Update and Notice of Results

 

Finsbury Food Group Plc (AIM: FIF), a leading UK speciality bakery
manufacturer of cake, bread and morning goods for both the retail and
foodservice channels, is today providing an update on trading for the
financial year, ended 2 July 2022, prior to entering its close period.

 

The Group delivered a robust full year performance in line with market
expectations whilst having to manage and adapt the business under exceptional
macroeconomic and inflationary headwinds. Total sales of £356.8m represent a
13.9% increase of which volume is 8.7% versus the corresponding period in the
prior year. The Group delivered a strong second half performance, with H2
revenues up 18.7% (volume is 10.0%) against the corresponding period in the
prior year.

 

This growth in sales has been driven by a stable performance in the Group's
core division, UK Bakery, +12.1%, which includes a continuation of the robust
recovery in foodservice, +38.1%, and a +26.6% increase in the Group's Overseas
division.

 

The Company has continued to be challenged by the persistent pressure from
input cost inflation, staff shortages and other supply chain disruptions.
Pleasingly, it was able to mostly mitigate the impact of these pressures
through revised commercial arrangements, operational improvements and other
supply chain initiatives. It will continue in the same vein as further
inflationary cost pressures are expected in the new financial year.

 

The Group also successfully negotiated a new four + one year £120m credit
facility (£60m core + £60m accordion) effective as of 27 June 2022. As
relayed in the February 2022 Interim Results announcement, the Board continues
to explore opportunities to accelerate the growth of the Group through
targeted acquisitions. Whilst the current stock market conditions persist and
lower ratings of food manufacturers become a feature, these new credit
facilities provide financial flexibility for the Group to pursue its
significant growth ambitions.

 

Notice of results

 

The Group will announce its Full Year Results, for the twelve months ended 2
July 2022 on Monday 26 September 2022. Finsbury will host a webinar for
analysts at 09:00am on 26 September 2022. Analysts wishing to attend the
webinar should contact Alma PR via finsbury@almapr.co.uk
(mailto:finsbury@almapr.co.uk) .

 

The Company will also host a presentation for retail investors on the Investor
Meet Company platform at 16:30pm GMT on Tuesday 27 September 2022.
Shareholders who already follow Finsbury Food Group on the platform will
automatically be invited; others are invited to register in advance via the
following link:
https://www.investormeetcompany.com/finsbury-food-group-plc/register-investor
(https://www.investormeetcompany.com/finsbury-food-group-plc/register-investor)

 

 

John Duffy, Chief Executive of Finsbury Food Group Plc, commented:

 

"To have delivered a record revenue performance this year that is in line with
market expectations despite the challenging backdrop is testament to the hard
work of our teams and the resilience of our model. Our Retail business
performed well, we continued to see a bounce back in foodservice, and our
Overseas division continued to see strong growth.

 

In recent years, we have experienced unprecedented challenges first triggered
by the Covid crisis and now by significant input cost inflation and falling
consumer confidence. While headwinds are expected to persist, we have a strong
balance sheet and a successful track record of navigating challenging market
conditions. I remain confident in Finsbury's ability to deliver on its
long-term growth ambitions."

 

 

 

For further information:

 

 Finsbury Food Group                                                                    www.finsburyfoods.co.uk (http://www.finsburyfoods.co.uk)  029 20 357 500

 John Duffy (Chief Executive)

 Steve Boyd (Finance Director)

 Panmure Gordon (UK) Limited                                                                                                                      020 7886 2500

 Oliver Cardigan (Corporate Finance)

 Atholl Tweedie

 Erik Anderson (Corporate Broking)

 Edward Walsh

 Alma                                                                                   finsbury@almapr.co.uk (mailto:finsbury@almapr.co.uk)      020 3405 0205
 PR

 Sam Modlin

 David Ison

 Matthew Young

 

 

Notes to editors:

·      Finsbury Food Group Plc (AIM: FIF) is a leading UK manufacturer
of cake and bread bakery goods, supplying a broad range of blue chip customers
within both the grocery retail and 'out of home eating' foodservice sectors
including major multiples and leading foodservice providers.

·      The Company is one of the largest speciality bakery groups in the
UK and, with its Overseas division, has sales in the financial year ending 2
July 2022 exceeding £356m

·      The Company's bakery product range is comprehensive and includes:

·      Large premium and celebration cakes.

·      Small snacking cake formats such as cake slices and bites.

·      Artisan, healthy lifestyle and organic breads through to rolls,
muffins (sweet and savoury) and morning pastries, all of which are available
both fresh and frozen dependent on customer channel requirements.

·      Gluten Free bread, morning goods and cake ranges.

·      The Company is one of the largest ambient cake manufacturers in
the UK, a market valued at £1.024bn (source: IRI 52 w/e 18th June 2022). The
retail bread and morning goods market has a value of £5.1 billion (source:
Kantar Worldpanel 52 w/e 12th April 2022). The retail Free From cake market is
valued at £57 million (source: Kantar Worldpanel 52 w/e 12th April 2022). The
retail Free From bread & morning goods market is valued at £159 million
(source: Kantar Worldpanel 52 w/e 12th April 2022).

·      The Company comprises a core UK Bakery division and an Overseas
division:

·      The UK Bakery division has manufacturing sites in Cardiff, East
Kilbride, Hamilton, Salisbury, Sheffield, Manchester, and Pontypool.

·      The Overseas division comprises the Company's 85% owned company,
Lightbody Stretz Ltd, which supplies and distributes the Group's
UK-manufactured products and third party products, primarily to Europe, and
the Company's manufacturing facilities in Rybarzowice and Zywiec in Poland.

 

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