Finsbury Food is on track to hit its profit target for the year, despite a perfect storm of high commodity prices and rising wages putting pressure on margins.
The baker, which is listed on London’s junior Aim market, produces cakes and bread for supermarkets, restaurants and cafes. The depreciation of the pound, combined with higher prices for ingredients such as butter, eggs and cocoa and the introduction of the national living wage, have clobbered Finsbury’s profit margins because it makes it much more expensive to produce the baked goods.
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