Cakes fail to rise at Finsbury

The cake, bread and breakfast foods group reported revenue up 12% compared with the same period last year although a good part of this was from one off gains to do with timing. Sales in Finsbury’s two smaller divisions, Bread and Free From (its gluten free products division), continued to increase with like for like growth, after adjusting for acquisitions and the additional week of trading, of 16% and 23% respectively. Sales in the AIM-listed baker’s cake division were up 4% in absolute terms versus the first half of last year but flat on a like for like basis. Growth in this part of the business had been impacted by a reduction in sales of seasonal products in its range, Finsbury said. The company said it was continuing to invest heavily in promotional activity and was experiencing an increase in demand for products under its licensed brands, in particular Thorntons and WeightWatchers, which complemented the development of its key retailer own brand relationships. With the consumer environment for the next six months remaining uncertain, Finsbury said it was difficult to be definitive about its earnings expectations this year. “Our current view remains that operating margins are likely to be between 1% and 2% lower than last year; however, we continue to be confident that the demand for our brands and our strong product range will enable us to maintain our leading position in the market place,” the trading statement concluded.