Finsbury Food Group, a leading U.K. bakery group, has announced an increase in pretax profit for fiscal 2023. This growth can be attributed to effective price management and the successful integration of Lees Foods, which has resulted in increased volumes. However, the company continues to face margin pressure due to inflationary factors.
Financial Performance
In the year ended July 1, pretax profit rose to £16.2 million ($19.8 million) compared to £14.3 million in fiscal 2022. This positive outcome was accompanied by a considerable rise in revenue, reaching £413.7 million, up from £356.8 million the previous year. The company achieved this through strategic price increases and incremental volumes from the acquisition of Lees Foods. Furthermore, both the U.K. food-service and overseas business segments registered a commendable 25% increase in revenue.
Challenges and Expectations
While Finsbury Food Group’s performance has been satisfactory in the early months of the current fiscal year, margin pressure caused by cost inflation and macroeconomic uncertainty persists from fiscal 2023. CEO John Duffy acknowledges these challenges and states, “Looking ahead, whilst we are starting to see some of the inflationary pressures ease, costs remain inflationary, and we expect to have to navigate further macroeconomic challenges over the course of the current financial year.”
Dividend Announcement
Finsbury Food Group plans to pay a dividend of 1.73 pence by the end of the calendar year.
