Finsbury Food Group (AIM:FIF) said it expects to report robust full-year results featuring "a record revenue performance" despite inflationary headwinds and unprecedented challenges, adding that it continues to seek targeted acquisitions to accelerate growth.
Shares jumped 5.56% to 71.78p in morning trade.
The AIM-listed UK speciality baker said total sales rose 13.9% to £356.8mln in the year to 2 July 2022, of which volume was 8.7%, versus the corresponding period in the prior year.
The group delivered a strong second-half performance, with revenues up 18.7% compared to the comparative prior-year period, it said in a trading update.
The baked goods manufacturer said the growth in sales was driven by a stable performance in the group's core division, UK Bakery, which was up 12.1%, and a continuation of robust recovery in foodservice, up 38.1%, as well as a 26.6% increase in the group's Overseas division.
Input cost inflation, staff shortages, and other supply chain disruptions have continued to challenge the company, but it said these pressures were mostly mitigated.
A new four-plus-one-year £120mln credit facility was also successfully negotiated, providing the group with "financial flexibility" to pursue growth ambitions through targeted acquisitions.
"To have delivered a record revenue performance this year that is in line with market expectations despite the challenging backdrop is testament to the hard work of our teams and the resilience of our model," said John Duffy, chief executive.
"Our Retail business performed well, we continued to see a bounce back in foodservice, and our Overseas division continued to see strong growth."
Full-year results will be announced on 26 September 2022.