Finsbury Food Group (GB:FIF) posted its preliminary results for the full year of 2022, and the company is navigating the current difficult economic environment elegantly, and seeing a comeback of its food service business.
Revenue increased by almost 14% to £357 million, driven by the post-pandemic recovery in the UK food business, which was up by 38%. Due to strong performance with French retailers, the company’s international division sales increased by 27% year on year.
Gross margins were almost flat at 32.4% as compared to 32.9% in 2021.
Despite the challenging market conditions with supply disruptions and higher costs, the company managed to grow its operating profits by 10.6% to £17.8 million.
The company’s ongoing initiative, the Operating Brilliance Program, which is aimed at reducing waste, helped it achieve improved cost savings.
John Duffy, Chief Executive of Finsbury Food, said, “Pleasingly, we were able to mitigate most of the impact of the macro challenges through revised commercial arrangements, operational improvements, and other supply chain initiatives. We will continue in the same vein in the new financial year, as these pressures are expected to worsen.”
Dividends were reinstated and 2.4p per share was paid for the year 2021. In 2022, the company announced a final dividend of 1.67p per share, bringing the total dividend to 2.5p per share.
Stock prices have been on a downward trajectory since December 2021. The stock is trading down by almost 14% in the last year.
What are the brands in the Finsbury Food Group?
The company owns eight bakery companies that produce a wide range of cakes, bread, and other snacks for various retailers.
Its brand includes Memory Lane Cakes, Fletchers, Kara, Johnstone’s Food Service, Lightbody, Lightbody Europe, Nicholas & Harris, Ultrapharm, and Ultraeuropa.
Conclusion
Finsbury’s results were in line with what the company expected in its pre-close update shared in July.
The solid revenue performance depicts the business’s stability, even during tougher business conditions.
