Finsbury Food Group Plc (AIM: FIF), a leading UK speciality bakery manufacturer of cake, bread and morning goods for the retail and foodservice channels, is pleased to announce its unaudited interim results for the 26 weeks ended 29 December 2018.
Summary
- Group revenue on a like for like*1 basis up 0.5% to £145.5m (H1 2017: £144.8m) with UK Bakery sales up 1.7%.
- Total group revenue down 3.5% to £152.3m, reflecting closed businesses partially offset by acquisition.
- Group operating profit (adjusted*2) flat at £8.7m.
- Group operating profit margin (adjusted*2) increased to 5.7% (H1 2017: 5.5%).
- Group EBITDA (adjusted) up 2.2% to £12.9m (H1 2017: £12.7m)
- Profit before tax of £7.5m (H1 2017: loss (£1.2m)).
- Profit before tax (adjusted*2) of £8.3m broadly in line with prior year of £8.4m.
- Adjusted*3 diluted EPS (pence per share) up 2.1% at 4.9p (H1 2017: 4.8p), adjusted EPS, up 2.0% at 5.1p (H1 2017: 5.0p).
- Interim dividend per share increased 5.5% to 1.16p (H1 2017: 1.1p per share).
- Net debt of £36.1m increased to 1.3 times annualised EBITDA of the Group (H1 2017: £16.6m, 0.6 times).
Strategic highlights
- Completed the acquisition of Ultrapharm, a manufacturer of Gluten Free Bread and Morning Goods both in the UK and in Europe.
- Successful launch of a new range of individually wrapped cake bars for on the go consumption.
- Launch of new ‘Vegan’ brioche style burger bun into Foodservice, approved by Vegan society.
- Winner of Bakery Manufacturing company of the year in the Food Manufacturer Excellence Awards.
- Winner of Quality food awards for a number of products.
The Group uses Alternative Performance Measures (APMs) which are non-IFRS measures to monitor performance of its operations and of the Group as a whole. The reconciliation to IFRS measures is shown in the Consolidated Statement of Comprehensive Income.
*1Like for like revenue is the revenue from operations excluding the revenue from the closed bakeries and acquired businesses.
*2 Profit is before significant non-recurring and other items.
*3 Adjusted and adjusted diluted EPS have been calculated using earnings excluding the impact of amortisation of intangibles and significant non-recurring and other items as shown on the face of the Statement of Comprehensive Income. The adjusted diluted EPS and adjusted EPS have been given, as in the opinion of the Board this will allow shareholders to gain a clearer understanding of the trading performance of the Group.
Commenting on the results, John Duffy, Chief Executive of Finsbury Food Group Plc, said:
“In what has been a challenging period, we are pleased to report another robust set of financials, testament to the strength of our business and our position in the market place. This strength is clearly illustrated by the growth in margins achieved and the further increase in our dividend.
“This resilience comes from a number of areas, both historic and ongoing: our capital investment, the diversification of the Group into foodservice and high growth areas such as Free From, and our constant drive for efficiency. However importantly, alongside this, our relentless drive to deliver on customer trends and ensure our products are not only best in class, but also what customers are looking for. Our launch of a new ‘Vegan’ brioche style burger bun is testament to this.
“Whilst there is no doubt that the wider market pressures will continue in the period ahead, our market position is solid and we are well positioned both now and for the longer term.”
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