15th Jul 2019 11:21
(Alliance News) - Cake and bread maker Finsbury Food Group PLC on Monday said a stronger second half means it should meet profit expectations for its recently ended financial year.
For the year ended June, revenue rose 3.1% like-for-like to GBP299.3 million, with second-half sales increase 5.7% on the year before.
This stronger second half outturn, Finsbury said, was due to organic growth, price recovery, and new contract wins. Including closed and acquired businesses, revenue was up 3.8% to GBP315.3 million with second-half sales rising 12%.
"We have navigated through an intense period of cost inflation and broader macro issues, and as such, we are very pleased to be reporting a strong return to growth in the second half, delivering a performance that is in line with market expectations," said Chief Executive John Duffy.
"We look forward to reaping the benefits of the investment in Ultrapharm, an acquisition that has further diversified the Group into higher growth markets. As a focused and diversified Group, we remain optimistic about the growth prospects ahead."
In the main division, UK Bakery, like-for-like annual sales rose 4.7%, ahead of the market and despite poor consumer confidence in the UK.
Overseas revenue fell 9.8% on a like-for-like basis, but including Ultrapharm climbed 13%. Ultrapharm, a gluten-free bakery, was bought for up to GBP20 million in the autumn of 2018.
Shares were 4.8% higher on Monday morning at a price of 67.58 pence each.
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