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Finsbury reports sales growth despite increasing pricesJill Park, 23 September 2008Be the first to comment on this article Finsbury Food Group, the baked goods manufacturer, has successfully passed on rising input costs to customers, increasing sales by 54% for the year ended 30 June 2008. The company reported that group sales group rose by 54% to £169m, despite rising input costs forcing the company to introduce cost increases in autumn 2007 and early 2008. It said its cake division has grown by 8% across its three businesses. Its bread making business, Nicholas and Harris, was up 125% and United Central Bakeries reported a 43% growth in sales. David Marshall, chairman of the group said that while approximately 3% of growth can be attributed to price, “the balance has come from volume growth”. New chief executive Martin Lightbody said the company is in ongoing “negotiations with its customers at the moment” regarding cost increases. Lightbody added that for the past year Finsbury Food Group has been “led by the supermarkets” and has been concentrating on reducing its packaging. “Supermarkets certainly do not want products to be over packaged,” said Lightbody. The Welsh company’s share price rose by 7% to 43p this morning, in spite of the company reporting that its pre-tax profit fell to £5.1m from £5.4m the previous year. Finsbury Food Group is the second top manufacturer in the cake industry, valued at £1.51bn, and with businesses including Memory Lane Cakes, Lightbody Group, California Cakes, Campbells Cakes, Nicholas & Harris and United Central Bakeries. The group holds the licensing rights to WeightWatchers, Thorntons, Nestlé Confectionery and the use of the Disney brand with the Lightbody group. Chief executive Dave Brooks will step down on 29 September and be replaced by group strategic development director Martin Lightbody. Speak Your Mind |
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