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

Finsbury FoodAnnouncement

19/07/2023 07:00

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RNS Number : 4356G  Finsbury Food Group PLC  19 July 2023

 Date:          19 July 2023
 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 1 July 2023, prior to entering its close period.

 

The Group delivered a resilient full year performance despite the challenges
of persistent significant cost inflation and macroeconomic uncertainty. Total
Group sales of £413.7m, which includes the acquisition of Lees Foods Limited,
increased by 16.0% versus the previous year, and 12.6% excluding Lees. The
Group delivered a strong second half performance, with H2 revenues up 17.1%
versus the corresponding period in the prior year. The growth in sales has
been driven primarily by price and the incremental volume from Lees.

 

The Group's core division, UK Bakery, which includes Lees, delivered a robust
performance with a 14.5% sales increase versus the prior year, this includes a
continuation of the recovery in foodservice, up 25.1%, whilst the Group's
Overseas division again performed strongly, delivering a 25.0% increase versus
the prior year.

 

The Group's strategic acquisition of Lees further consolidated its position in
the sweet treats sector and grew its manufacturing presence in Scotland. Lees
has a well-established number one position in the UK meringue category and
strong relationships across a high quality and diverse customer base. This
provides Finsbury with the opportunity to build upon both businesses' existing
retail relationships and unlock further commercial opportunities, including
out of home eating. Since the acquisition, the performance of the Lees
business has been in line with management's expectations.

 

The Company has continued to operate in an incredibly challenging environment
as significant cost inflation and macroeconomic uncertainly has persisted
throughout the period. However, the Company has, once again, successfully
focused on managing these challenges through commercial terms, operational
improvements and other supply chain and overhead initiatives. This focus will
remain as further challenges are expected in the new financial year.

 

Notice of results

 

The Group will announce its Full Year Results, for the twelve months ended 1
July 2023 on Tuesday 26 September 2023. Finsbury will host a webinar for
analysts at 09:00am on 26 September 2023. 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 Wednesday 27 September 2023.
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:

 

"The record revenue performance, which is in line with market expectations,
that we have delivered this year is testament to the ongoing demand for our
products and the resilience and determination of the business. Across the
Group, we have seen a stable performance in UK retail, ongoing recovery in UK
foodservice and continued growth in our Overseas division. I would like to
thank the whole Finsbury team for their hard work and dedication during what
has been a testing year.

 

Whilst the challenges that we have faced over the past few years have been
significant, and are likely to remain in the short-term, Finsbury has proven
itself to be an adaptable and resilient business. We continue to make good
progress against our objectives, based around our three strategic pillars of
Excellence, Growth and Responsibility and underpinned by our Operating
Principles, and we remain well placed to deliver on our long-term growth
ambitions."

 

 

Contact:

 

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

 John Duffy (Chief Executive Officer)

 Steve Boyd (Finance Director)

 Panmure Gordon (UK) Limited                                                                                                                        020 7886 2500

 Dominic Morley

 Atholl Tweedie

 Rupert Dearden

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

 Sam Modlin

 Rebecca Sanders-Hewett

 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, had sales in the financial year ending 2
July 2022 exceeding £356 million.

 

·      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 £1.1 billion (source: IRI 52 w/e 17 June 2023).
The retail bread and morning goods market has a value of £5.9 billion
(source: Kantar Worldpanel 52 w/e 16 April 2023). The retail Free From cake
market is valued at £65.6 million (source: Kantar Worldpanel 52 w/e 16 April
2023). The retail Free From bread and morning goods market is valued at
£178.3 million (source: Kantar Worldpanel 52 w/e 16 April 2023).

 

·      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, Pontypool and now
Coatbridge.

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

 

 

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