Finsbury Food swings to a profit following disposal of Grain D'Or
British baker Finsbury Food Group swung to a pre-tax profit in the first half of its trading year as a result of the shuttering of Grain D'Or and cost pressures in the form of increased flour prices and labour inflation.
Finsbury Food Group
110.00p
16:50 15/11/23
Food Producers & Processors
8,110.71
12:30 24/04/24
FTSE AIM All-Share
754.77
12:30 24/04/24
Finsbury saw revenues rise 0.5% on a like-for-like basis to £145.5m; however, total sales fell 3.5% to £152.3m in the six months ended 29 December.
Operating profits were flat at £8.7m, while pre-tax profits came to £7.5m in the half, a marked turnaround from the £1.2m loss recorded a year earlier.
Earnings per share picked up 2.1% to 4.9p.
The AIM-listed outfit said the bakery sector continued to face commodity headwinds, now led by flour, continuing labour inflation ahead of CPI driven by the National Living Wage, "significant" utility inflation and general inflation all of which necessitated price recovery from customers.
Net debt increased 117% to £36.1m.
Chief executive John Duffy said: "In what has been a challenging period, we are pleased to report another robust set of financials, testament to the strength of our business and our position in the market place.
"Whilst there is no doubt that the wider market pressures will continue in the period ahead, our market position is solid and we are well positioned both now and for the longer term."
As of 1200 GMT, Finsbury shares had dipped 2.30% to 80.12p.