AGM Statement

RNS Number : 6743G

Finsbury Food Group PLC

17 November 2022

 

Date:	17 November 2022
On behalf of:	Finsbury Food Group Plc ('Finsbury', 'the Company' or 'the Group')
For immediate release

Finsbury Food Group Plc

AGM Statement

Finsbury Food Group Plc (AIM: FIF), a leading UK specialty bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, will be holding its Annual General Meeting today at 9.00am. At the meeting, Peter Baker, Non-Executive Chairman of the Company, will make the following statement:

"As reported in the Group's full year results in September, to have delivered a record revenue performance that was in line with market expectations despite the numerous and complex challenges that we were faced with demonstrated the resilience and agility of the Group and the enduring appeal of our product range. These challenges started with the effects of the Covid-19 crisis followed by the significant cost inflation of all inputs whether it be materials, utilities, labour and, indeed, overheads in general.

The robust performance of the previous financial year to 2nd July 2022 has continued into the current financial year. Sales for the first four months of FY23 grew by 15.7% to £122.8m, driven by a mix of volume growth of 1.1% and price recovery of 14.6%. Our retail business continues to perform well, foodservice continued to bounce back, and our overseas division continued to see strong growth.

The macro-economic and cost inflation headwinds that we have had to face throughout the opening months of the new financial year have been at levels in excess of those experienced in FY22. These are set to persist for the remainder of the year, making it difficult to predict exactly how the rest of the year will unfold, however, we continue to mitigate them through revised commercial arrangements, operational improvements and other supply chain and overhead initiatives. Whilst it is too early to categorise it as a long-term trend, we are starting to see a shift in consumer behaviour as they look to spend in less expensive retail channels and are seeking greater value for money which should accelerate food retailers' Own Label sales. We believe our market position in these channels and the diversification of our product range will stand us in good stead as we navigate this challenging economic environment.  

Looking ahead, our focus on strategic execution will not waver and we are committed to making sustained progress against our three pillars of Excellence, Growth and Responsibility, all of which are underpinned by our Operating Principles. Finsbury has a strong track record of moving forwards as a business in difficult times and this gives the Board confidence that the Group will continue to make progress and deliver profitable growth."

The AGM will be broadcast live on the Investor Meet Company platform. Investors can sign up to Investor Meet Company for free and add the Company via: https://www.investormeetcompany.com/finsbury-food-group-plc/register-investor

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For further information:

Finsbury Food Group   John Duffy (Chief Executive) Steve Boyd (Finance Director)	www.finsburyfoods.co.uk	029 20 357 500
Panmure Gordon (UK) Limited Oliver Cardigan (Corporate Finance) Atholl Tweedie Erik Anderson (Corporate Broking)		020 7886 2500
Alma PR   Sam Modlin David Ison Matthew Young	[e-mail]	020 3405 0205

Notes to Editors:

· Finsbury Food Group Plc (AIM: FIF) is a leading UK and European 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, together with its overseas division, has sales in the financial year ending 2 July 2022 of £357 million.

· 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; and

· 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 £1.04 billion (source: IRI 52 w/e 8th October 2022). The retail bread and morning goods market has a value of £5.3 billion (source: Kantar Worldpanel 52 w/e 4th September 2022). The retail Free From cake market is valued at £58 million (source: Kantar Worldpanel 52 w/e 4th September 2022). The retail Free From bread and morning goods market is valued at £166 million (source: Kantar Worldpanel 52 w/e 4th September 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 Limited, 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 Żywiec in Poland.

 

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