London / UK. (ffg) Finsbury Food Group PLC, a leading manufacturer of cake, bread and gluten free bakery goods, is providing an update on trading for the first half of the current financial year, ended 01 January 2011, prior to entering into its closed period.
Group revenue was up 6,0 percent compared with the same period last year reversing the decline of the last full year. There were no acquisitions or disposals during the period.
Sales in the Bread and Free From division accounted for the majority of the Group´s growth; up 14,5 percent on prior year, driven by strong growth from the Genius brand in the fresh gluten free market and the Vogel´s brand in the speciality bread market. As reported some weeks ago, the Group, through its United Central Bakeries and Livwell subsidiaries, entered into a new contractual joint venture agreement with Genius Foods Limited, its existing partner and owner of the Genius brand, to further expand its free from product portfolio.
Sales in the larger Cake division are up 3,2 percent versus the first half of last year. UK market and export sales have both shown growth although the former has required increased promotional support levels to remain competitive and deliver growth in the current marketplace.
The company continues to steer a cautious path through difficult times. The operating environment is constantly evolving but continues to be very challenging with commodity price and cost inflation pressures on one hand and fragile consumer confidence impacting spending on the other. Finsbury´s internal efficiency programmes across the business remain key in its meeting these external challenges.
During January, the German fresh egg dioxin scare in the Memory Lane cake business has resulted in a challenging start to the second half of the financial year. Although the products were safe to consume, cakes were removed from shelves by retailers as a precautionary measure. The fact that there was no public health risk, has led the company insurer to challenge recovery of any associated withdrawal costs. The company is currently in discussions with the insurer, retailers and the egg supplier to resolve the issue.
Whilst the consumer and inflationary environment remains difficult to predict, the company continues to see new product growth opportunities within its businesses and, after six months, are trading in line with expectations.
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Zabka Group: opens first »Froo« stores in Romania
- Goodfood: Reports Third Quarter 2024 Results
- Greggs: announces new National Distribution Centre
- Greencore: announces H1-2024 trading update
- Orkla ASA: reports strong profit improvement in Q2-2024
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland