Finsburys’ profit is hit hard

first_imgFinsbury Foods’ profit has taken a severe hit, with adjusted pre-tax profit down 45% to £1.8m for the six months to 31 December 2008. Pre-tax profit stood at £0.2m compared to £1.6m in 2008, despite increasing sales in its bread and free-from divisions.The cakes, breads and morning goods manufacturer saw revenue rise by 11% to £92.1m. But “significantly increased” investment in promotional support for customers and consumers as well as additional investment in the integration of its cake division have impacted profits. The company’s cake division experienced a 4% rise in sales on last year’s figures, and its breads and free-from divisions saw like-for-like sales up 16% and 23% respectively. Martin Lightbody, chief executive, said: “It is encouraging to see sales have remained resilient, despite the recessionary environment. We have focused our investment on further integration of our businesses and improving our facilities.”The firm also saw extra distribution and utility costs of £1.2m over the period.According to the statement released it had been an “extremely challenging period for Finsbury”, however Finsbury said trading for the first eight weeks from January has been in line with expectations. “Over these eight weeks, sales have increased by 4% in our Cake division, by 14% in our Free From businesses and by 6% in our Bread business.”last_img read more

Hovis to drive white bread as sales surge

first_imgPremier Foods has announced strong growth for Hovis’ branded bakery, and plans to push for further sales of white bread.In the firm’s preliminary results for the year ended 31 December 2009, it announced that branded bakery sales for Hovis grew by 13.5% to £370m, though it explained the increase in volume sales was partly offset by pricing with the proportion of bread sold on promotion higher than in 2008.Retailer brand bakery fell by 15.6% to £179m, but Premier noted that the loss in non-branded sales was “more than offset” by increased volumes of branded bread. Regarding future opportunities, Premier said growth was still available from “expanding in segments of the market in which Hovis is under-represented, such as white bread”.Total bakery sales in the Hovis division were up 2% to £549m. Milling sales fell by 16.8% to £193m, as raw material costs had a significant effect, according to the firm. This resulted in a fall in total sales for Hovis of 3.6% to £742m. However, trading profit for the division was up 75% from £24m in 2008 to £42m in 2009.last_img read more