Premier Foods plc Trading update for the 13 weeks ended 30 June 2018 (9533U)
July 18 2018 - 2:00AM
UK Regulatory
TIDMPFD TIDMIRSH
RNS Number : 9533U
Premier Foods plc
18 July 2018
18 July 2018
Premier Foods plc (the "Company" or the "Group")
Trading update for the 13 weeks ended 30 June 2018
-- Q1 Group sales up +1.7%
-- Calendar H1 Group sales up +4.5%
-- Expectations for the full year remain unchanged
Gavin Darby, Chief Executive Officer
"We are pleased to report another quarter of growth, with sales
up +1.7% compared to last year. Our biggest brand, Mr Kipling, led
the charge with an excellent performance on the back of its recent
brand relaunch with sales up +14% in the UK. Over the last six
months, we have delivered sales growth of +4.5% which goes to show
that our strategy of product innovation and working closely with
our strategic partnerships is delivering results. With further
exciting innovation across our branded portfolio to come in the
months ahead, our expectations for progress in the year remain
unchanged."
Q1 Sales % change Grocery Sweet Treats Group Calendar
H1
Branded (1.5%) 7.6% 1.1% 3.5%
Non-branded 9.1% (5.4%) 4.8% 10.0%
-------- ------------- ------ ---------
Total 0.2% 5.5% 1.7% 4.5%
-------- ------------- ------ ---------
Trading update
Group sales in the first quarter grew by 1.7% compared to the
prior year. This reflected a particularly good performance from the
Group's largest brand, Mr Kipling, following a comprehensive brand
relaunch in March which included a TV advertising campaign, brand
re-design and new packaging. International sales increased
approximately 4% during quarter 1 and followed a better than
expected performance in the previous quarter. Taking these last two
quarters together, International sales grew nearly 20%.
In the Grocery business, Batchelors continued to display the
excellent growth trends it has delivered over the last year, with
further demonstration that its innovation strategy, aligned to key
consumer trends is working. Batchelors Super Noodles pots and Pasta
'n' Sauce pots grew by over 50% in the quarter. Sales of Bisto were
slower towards the end of the first quarter as category volumes
declined due to warmer weather experienced in the UK. Angel Delight
again saw double-digit sales growth in the quarter, while Loyd
Grossman sales were lower due to changes in the phasing of
promotional activity. Nissin branded products Soba Noodles and Cup
Noodle grew by nearly 80% compared to the same period a year
ago.
In Sweet Treats, Cadbury cake sales in the UK were lower in the
early part of the quarter as expected due to Easter falling in the
previous quarter, while non-branded sales were GBP0.4m lower as the
Group exited two customer contracts.
Non-branded sales in the Grocery business increased by 9.1% with
continued good momentum in Knighton Foods and contract wins in
Stuffing and Foodservice.
Cost reduction & efficiency programmes
The Group successfully completed the second phase of the
consolidation of its warehousing and distribution operations into
one central location during the quarter. The facility in Tamworth,
Warwickshire, is expected to complete the third and final phase of
the project in the second quarter of the year.
Outlook
The Group's expectations for progress in its key priorities in
the full year remains unchanged, and as previously communicated,
weighted to the second half of the year. The Board is committed to
continuing its strategy of improving performance and reducing net
debt by GBP25m per annum, while working in parallel to identify
other strategic opportunities to accelerate the Company's
turnaround to create value for shareholders.
Ends
For further information, please contact:
Institutional investors and analysts:
Alastair Murray, Chief Financial Officer +44 (0) 1727 815 850
Richard Godden, Director of Investor
Relations & Treasury +44 (0) 1727 815 850
Media enquiries:
Maitland +44 (0) 20 7379 5151
Neil Bennett
Clinton Manning
Joanna Davidson
Conference Call
A conference call for investors and analysts will take place on
18 July 2018 at 9.00am, details of which are outlined below. A
replay of the conference call will be available on the Company's
website later in the day.
http://www.premierfoods.co.uk/investors/results-centre
Telephone number: +44 20 7192 8000
Telephone number (UK Toll
free) 0800 376 7922
Conference ID: 4996315
A Premier Foods image gallery is available using the following
link:
http://www.premierfoods.co.uk/media/image-gallery
Certain statements in this Trading Update are forward looking
statements. By their nature, forward looking statements involve a
number of risks, uncertainties or assumptions that could cause
actual results or events to differ materially from those expressed
or implied by those statements. Forward looking statements
regarding past trends or activities should not be taken as
representation that such trends or activities will continue in the
future. Accordingly, undue reliance should not be placed on forward
looking statements.
Notes to editors:
1. Sales data is for the thirteen weeks to 30 June 2018 or 1 July 2017 as appropriate.
Q1 Sales (GBPm) FY18/19 FY17/18 % Change
Q1 Q1
Grocery
Branded 100.8 102.3 (1.5%)
Non-branded 20.8 19.1 9.1%
-------- -------- ---------
Total 121.6 121.4 0.2%
Sweet Treats
Branded 43.9 40.8 7.6%
Non-branded 7.5 7.9 (5.4%)
-------- -------- ---------
Total 51.4 48.7 5.5%
-------- -------- ---------
Group
Branded 144.6 143.1 1.1%
Non-branded 28.4 27.0 4.8%
-------- -------- ---------
Total 173.0 170.1 1.7%
-------- -------- ---------
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END
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