Finsbury Food H2 sales hit by Covid-19 crisis

Speciality baker Finsbury Food reported a decline in second-half sales on Wednesday as it took a hit from the coronavirus outbreak.

In an update for the year to 27 June, the company said group revenues fell to £306.3m from £315.3m, with revenue in the core UK bakery division down 2.6% and overseas revenue 4.9% lower.

Finsbury said the first half was “strong”, with revenues up 4.7% to £159.4m. However, the second half was dented by the virus outbreak, with sales down 9.8% to £146.9m.

"The second half was a combination of good momentum and strong trading in January and February in line with market expectations, followed by significantly weaker trading at the outbreak of the pandemic at the end of March and depressed but progressively improving sales through April, May and June (down 24%, 19% and 15% on last year respectively)," the company said.

Demand in the foodservice and food to go sectors - which accounted for around 20% of group revenue last year - reduced to almost nothing overnight after the implementation of lockdown measures in March, Finsbury said, before gradually recovering to 39% of prior-year levels in the fourth quarter.

The retail segment, which is the largest part of the group, remained "relatively resilient" although consumer shopping behavioural changes during lockdown did have an impact.

Meanwhile, sales of celebration cakes fell as people had less opportunity to celebrate with family and friends during lockdown, but demand for everyday products such as round cakes and buns and rolls increased.

Chief executive John Duffy said: "We continue to operate against a backdrop of heightened uncertainty and likely will for some time, but the group remains well-positioned to withstand the current situation, working collaboratively with large customers and global brand partners alike to ensure we anticipate and respond to future demand patterns and proactively develop products and ranges that fulfil those shifting consumer needs."