Company Announcements

Finsbury Food Group Plc

Pre-Close Trading Update and Notice of Results

Finsbury Food Group Plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is today providing an update on trading for the financial year, ended 2 July 2022, prior to entering its close period.

The Group delivered a robust full year performance in line with market expectations whilst having to manage and adapt the business under exceptional macroeconomic and inflationary headwinds. Total sales of £356.8m represent a 13.9% increase of which volume is 8.7% versus the corresponding period in the prior year. The Group delivered a strong second half performance, with H2 revenues up 18.7% (volume is 10.0%) against the corresponding period in the prior year.

This growth in sales has been driven by a stable performance in the Group's core division, UK Bakery, +12.1%, which includes a continuation of the robust recovery in foodservice, +38.1%, and a +26.6% increase in the Group's Overseas division.

The Company has continued to be challenged by the persistent pressure from input cost inflation, staff shortages and other supply chain disruptions. Pleasingly, it was able to mostly mitigate the impact of these pressures through revised commercial arrangements, operational improvements and other supply chain initiatives. It will continue in the same vein as further inflationary cost pressures are expected in the new financial year. 

The Group also successfully negotiated a new four + one year £120m credit facility (£60m core + £60m accordion) effective as of 27 June 2022. As relayed in the February 2022 Interim Results announcement, the Board continues to explore opportunities to accelerate the growth of the Group through targeted acquisitions. Whilst the current stock market conditions persist and lower ratings of food manufacturers become a feature, these new credit facilities provide financial flexibility for the Group to pursue its significant growth ambitions.

Notice of results

The Group will announce its Full Year Results, for the twelve months ended 2 July 2022 on Monday 26 September 2022. Finsbury will host a webinar for analysts at 09:00am on 26 September 2022. Analysts wishing to attend the webinar should contact Alma PR via finsbury@almapr.co.uk.

The Company will also host a presentation for retail investors on the Investor Meet Company platform at 16:30pm GMT on Tuesday 27 September 2022. Shareholders who already follow Finsbury Food Group on the platform will automatically be invited; others are invited to register in advance via the following link: https://www.investormeetcompany.com/finsbury-food-group-plc/register-investor

John Duffy, Chief Executive of Finsbury Food Group Plc, commented:

"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. Our Retail business performed well, we continued to see a bounce back in foodservice, and our Overseas division continued to see strong growth.

In recent years, we have experienced unprecedented challenges first triggered by the Covid crisis and now by significant input cost inflation and falling consumer confidence. While headwinds are expected to persist, we have a strong balance sheet and a successful track record of navigating challenging market conditions. I remain confident in Finsbury's ability to deliver on its long-term growth ambitions."

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Notes to editors:

·      Finsbury Food Group Plc (AIM: FIF) is a leading UK manufacturer of cake and bread bakery goods, supplying a broad range of blue chip customers within both the grocery retail and 'out of home eating' foodservice sectors including major multiples and leading foodservice providers.

·      The Company is one of the largest speciality bakery groups in the UK and, with its Overseas division, has sales in the financial year ending 2 July 2022 exceeding £356m

·      The Company's bakery product range is comprehensive and includes:

·      Large premium and celebration cakes.

·      Small snacking cake formats such as cake slices and bites.

·      Artisan, healthy lifestyle and organic breads through to rolls, muffins (sweet and savoury) and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.

·      Gluten Free bread, morning goods and cake ranges.

·      The Company is one of the largest ambient cake manufacturers in the UK, a market valued at £1.024bn (source: IRI 52 w/e 18th June 2022). The retail bread and morning goods market has a value of £5.1 billion (source: Kantar Worldpanel 52 w/e 12th April 2022). The retail Free From cake market is valued at £57 million (source: Kantar Worldpanel 52 w/e 12th April 2022). The retail Free From bread & morning goods market is valued at £159 million (source: Kantar Worldpanel 52 w/e 12th April 2022).

·      The Company comprises a core UK Bakery division and an Overseas division:

·      The UK Bakery division has manufacturing sites in Cardiff, East Kilbride, Hamilton, Salisbury, Sheffield, Manchester, and Pontypool.

·      The Overseas division comprises the Company's 85% owned company, Lightbody Stretz Ltd, which supplies and distributes the Group's UK-manufactured products and third party products, primarily to Europe, and the Company's manufacturing facilities in Rybarzowice and Zywiec in Poland.