Finsbury Food posts record revenues but profits hit by rising costs

21st Feb 2022 13:52

(Sharecast News) - Speciality cake maker Finsbury Food reported a record first-half sales performance on Monday but said profits had been hit by inflation.

In the six months to 25 December 2021, group revenue increased 9% to £166.5m, but pre-tax profit fell to £5.7m from £7.4m in the same period a year ago due to rising costs.

Chief executive John Duffy said: "We are pleased to have been able to deliver a record revenue performance in the first half, a demonstration of Finsbury's resilience and strategic focus. We are now a stronger and more united business than ever before and continue to reap the benefits of our Operating Brilliance Programme which have been one of the key drivers behind the positive performance.

"We have not been immune to the challenges arising from sudden and unexpected input cost inflation over the period. However, we have been able to mitigate the impact of these pressures through commercial negotiation and operational improvements and will see the benefit of these actions in our second half profit performance."

Finsbury said it expects to deliver full-year results in line with market expectations.

In addition, the company announced an agreement to buy a further 35% stake in French distribution subsidiary, Lightbody-Stretz, taking its holding to 85%. It has also entered into an option agreement to acquire the remaining 15% after two years.

Duffy said: "This acquisition is aligned to the company's M&A strategy as the board continues to grow the group both in the UK and in Europe, including the potential for meaningful acquisition."