Glisten improving before Finnish takeover

The Leeds-based firm, making its last interim results as an AIM company before its 20m takeover Finnish food group Raisio is completed, said turnover for the six months to December 31 rose to 39m compared to 35.4m last year.

Profit before tax and exceptional items was up to 2.2m from 2m as the group made "good progress" in the fruit and cereal snacks division.

In a statement Glisten said: "Most parts of our business are performing steadily and we are satisfied with progress to date this year but remain cautious about continued sales growth during the second half of the year.

"We believe that consumer focus on both premium and better-for-you/healthier snacks will return strongly but in the short term there is no doubt that the absolute priorities for many consumers continue to be price and value."

In its fruit and cereal snacks division Glisten said first half sales rose by 14 per cent to 14.3m and operating profits increased 18 per cent to 1.3m. The performance was down to a better July and August than the previous year.

Divisional sales demand in the half remained "inconsistent", it added.

In the confectioney division six monthly sales rose 3 per cent to 16.2m (2008: 15.7m) and operating profits rose 7 per cent to 1.5m.

Glisten cited TNS data showing the retail confectionery market continues to experience price deflation. Its own label sales have been affected by the switch to brands supported by promotional activity. The firm's response has included the development of fair-trade products under the "Traidcraft" label and diversification.

In its savoury snacking division has seen branded nut business Dormen has had a "steady" six months and the Weightwatcher savoury snacking products have shown "good sales growth momentum". Divisional sales in the first half were 8.5m and 21 per cent ahead of 2008. Operating profits in the half were 0.8m, down from 0.9m as Glisten invested in the brand and the management team.

Raisio, which makes Benecol cholesterol-reducing spread, said the takeover is a "first and important step" in its international expansion.

The acquisition is expected to be complete on April 8, with Glisten's AIM listing cancelled shortly after.