Finsbury Food acts against weak sterling, trading in line with expectations
Speciality baker Finsbury Food Group said it had continued to trade in-line with expectations during the first four months of the new financial year having adopted various measures to compensate for higher input costs after the pound weakened in the aftermath of Brexit.
Finsbury Food Group
110.00p
16:50 15/11/23
Food Producers & Processors
8,102.28
08:19 26/04/24
FTSE AIM All-Share
755.37
08:20 26/04/24
For the first four months, trading was line expectations as it made revenue of £101.5m, despite an established trend of deflation in the retail food market.
The UK bakery division saw a declined in revenues of 4%, but the overseas division, the company’s 50% owned European business, grew by 36.5%.
In response to recent weak sterling against the dollar and euro, the company modified its promotional activity while reviewing potential opportunities for changes to minimise costs and maintain affordability..
The company said that it continues to benefit from strong cashflow allowing elevated levels of investment to increase product innovation, efficiency and productivity throughout the Finsbury Food.
“The directors see this as a fundamental part of our long-term competitiveness as well as enabling the group to continue to deal with known headwinds such as sterling induced commodity inflation and the planned national living wage increases.”
Shares in Finsbury Food Group were down 6.51% to 116.40p at 1114 GMT.