Baked goods supplier Finsbury Food Group PLC (LON:FIF) shares dropped as it said half-year revenue fell after closing unprofitable bakeries
In a trading update for the six months to 31 December 2018, the company reported a 3.5% decline in revenue to £152mln for the period due to the prior year benefiting from the trading of bakeries that have since closed.
On a like-for-like basis, revenue edged up 0.5% to £145.5mln. Finsbury said the growth was led by its core UK bakery division, which saw like-for-like revenue rise 1.7% despite a tough macro-economic environment and inflationary pressures.
That was offset by a 8% decrease in the international division.
The firm said the integration of recently acquired gluten-free bakery manufacturer, Ultrapharm, is continuing to progress and additional capacity will be delivered by the end of the fiscal year.
“The group is now a diverse multi-channel speciality bakery group and despite the market conditions, is well placed to continue to drive efficiency, deliver innovation and maintain its leading position in the market,” it said.
In morning trading, shares fell 12.9% to 81p.