22nd Feb 2021 09:07
(Alliance News) - Finsbury Food Group PLC on Monday reported a sharp drop in profit in the first half but said its trading was "resilient" amid the pandemic.
For the six months to December 26, the bakery reported pretax profit of GBP7.4 million, down 16% from GBP8.8 million the year before.
Earnings before interest, taxes, depreciation and amortization dropped 9.8% to GBP13.1 million.
Revenue in the first half slipped 4.1% year-on-year in the first half to GBP152.9 million from GBP159.4 million.
Administrative expenses rose to GBP42.9 million from GBP40.2 million.
Chief Executive John Duffy said: "The first half was a period in which Finsbury again demonstrated its resilience and ability to manage and adapt to the effects of the pandemic. Through careful management of resources, anticipating and responding quickly and effectively to changes in consumer demand, and maximising the benefits of operational initiatives both new and historical, we were able to deliver a robust performance."
The manufacturer of cake, bread and morning goods for retail and foodservice firms said its UK Bakery unit saw revenue dip 4.7% due to Covid restrictions denting demand. Overseas revenue improved 0.6%, however.
"Retail performed very well and was up versus a strong corresponding six-month period in 2019, and while the trajectory of an overall recovery continues to be tempered by the adverse impact of tighter government restrictions on foodservice, we are confident the division will bounce back when trading conditions normalise, particularly when the public sector reopens," Duffy continued.
The firm said it expects "another resilient" performance in the second half.
He added: "The current operating environment continues to be characterised by near-term uncertainty and a challenging economic backdrop that is likely to remain for some time, but a combination of progress in the roll-out of the vaccine and the avoidance of a 'no deal' Brexit provides comfort around the group's medium-term prospects. Longer-term, our growth ambitions remain unchanged, and with the progress that is being made behind the scenes to make Finsbury a more efficient and joined-up business, focused on driving synergies and scale benefits across the group and its supply chain, we are confident we are building the right platform to achieve them."
Finsbury noted it will be reviewing it shareholder distribution policy in the coming months after suspending its dividend in 2020.
Shares in Finsbury Food were flat at 74.00 pence each in London on Monday morning.
By Paul McGowan; [email protected]
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