Premium cake market slump hits Finsbury sales

BAKER Finsbury Food Group saw sales fall for the first time in its history as the recession took its toll on the premium cake market.

Group revenue for the 52 weeks to 3 July 2010 was £168.3m, down 5.9 per cent year-on-year, although the company did manage to increase profits before tax by seven per cent to £5.4m, excluding one-off savings. The company’s cake operation, which accounts for 74 per cent of revenue and includes Memory Lane and Lightbody, saw sales drop by 9.7 per cent during the period, due to an overall decline in the cake market and a decision to exit low-margin business.

“Current trading for the first eight weeks since the half year is in line with expectations, with revenue growth of 10 per cent in absolute terms and five per cent on a like-for-like basis, after eliminating the impact of Livwell,” Finsbury said in a statement.