Belfast Telegraph

Finsbury Food sees revenue dip in tough conditions

The company still expects to deliver profits in line with market expectations.

Finsbury Food Group has blamed a challenging environment and rising costs for declining full-year revenue.

The cake and bread manufacturer said that revenue fell 3.4% to £303.6 million in the year to June 30.

Finsbury said: “In what has been a very challenging environment with unprecedented commodity and labour inflation, the group has done well to recover those cost pressures through a combination of operational efficiency and price recovery.”

The company still expects to deliver profits in line with market expectations.

Its core UK bakery division grew 2.8% on a like-for-like basis in the period, ahead of the wider market.

However, it added that the current UK economic environment remains “challenging”.

Boss John Duffy said: “We are pleased with the resilient performance of the group in what has once again been a period of market-wide inflationary pressure, illustrating that the work and investment undertaken in prior periods has continued to bear fruit.

“The group is robust, well diversified and in a strong position to continue to deliver on its strategic objectives in the period ahead.”

Last year Finsbury was forced to shut its loss-making Grain D’Or pastry factory, resulting in the loss of 250 jobs.

Finsbury acquired Grain D’Or as part of its takeover of the Fletcher Group of Bakeries in 2014 but the pastry and bread supplier is facing the chopping block after failing to turn a profit amid rising competition.

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