There was no soggy bottom at Finsbury Food Group PLC (LON:FIF) as the cake and bread baker rose more strongly in the second half of the year and is increasingly optimistic about its growth prospects.
Finsbury Food said it was “confident of delivering profits in line with market expectations” for the year, noting that some elements of cost inflation were easing but that “inflationary pressures remain”.
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Revenue for the year to 29 June of £299.3mln was up 3.1% compared to the prior year on a like-for-like (LFL) basis, with the second half seeing growth of 5.7% compared to 0.5% in the first.
A rich mix of organic growth, price recovery and new business wins drove the stronger performance in the second half.
Total revenues, including closed and acquired businesses, grew 11.7% in the second half and for the full year were up 3.8% to £315.3mln, having fallen 3.5% in the first half.
The UK bakery division grew LFL sales 4.7%, ahead of the wider market, while LFL sales at the overseas division declined 9.8% but increased 13.2% when including June 2018 acquisition Ultrapharm.
Some investment has been poured into Ultrapharm, which makes a rage of gluten-free products from breads and cakes to sausage rolls, to expand capacity, with a new bakery in Poland that is due to open soon.
Chief executive John Duffy said: “We look forward to reaping the benefits of the investment in Ultrapharm, an acquisition that has further diversified the group into higher growth markets.”
Looking back a the past year as a whole, he said Finsbury had “navigated through an intense period of cost inflation and broader macro issues” to deliver a performance in line with market expectations.