Finsbury Food Group PLC (LON: FIF) have seen their shares slip despite reporting higher sales in a recent update.
Shares of Finsbury Food slipped 1.29% to 84p on Wednesday. 20/11/19 12:10BST.
The firm outlined strong trading figures by saying that sales were up in the first half of its current financial year and expects to meet market expectations.
Interestingly, main rival Greggs (LON: GRG) reported strong trading figures a week ago, which causes shares to rally.
Additionally, firms in the food and drink industry such as Treasury Wine Estates (ASX: TWE) and Coca Cola (LON: CCH) have given shareholders renewed optimism following strong trading updates.
Speaking at the baker’s annual general meeting, Non-Executive Chair Peter Baker said the company has maintained momentum from its previous financial year, which ended June 29, with “strong” core business growth.
In the first four months of the new financial year, which ends in June 2020 the firm saw a 6.4% climb in sales to £101.5 million which will please shareholders in an uncertain market.
The firm dedicated the sales rise to its UK retail and food service performance, plus new business victories and further innovation across the group and company.
“Whilst the wider macroeconomic and political environment remains challenging in the UK, the group is in its strongest position in recent years, and the board is confident in achieving market expectations in financial 2020,” said Baker.
Finsbury Food are not the first firm to allude to tough market conditions as a dampener on business.
Certainly, the ongoing Brexit saga is becoming a huge obstruction to the progression of British business, and is an issue which legislators need to tackle.
Amid all the uncertainty, it seems that Finsbury have managed to overcome the struggles and produce a pleasing set of interim results. However, the worry lies with the consumer base of the UK which has led to slumps and collapse on the British high street.
