TIDMPFD TIDMIRSH
RNS Number : 0164Z
Premier Foods plc
20 January 2022
20 January 2022
Premier Foods plc (the "Company" or the "Group")
Premier Foods today provides its Quarter 3 trading update for
the thirteen weeks ended 1 January 2022
Strong Quarter 3 trading and market share gains;
Upgrading full year profit expectations
-- Q3 trading ahead of expectations, Group sales up 7.0% vs 2yrs ago and up 7.3% YTD
-- Q3 Branded sales ahead 11.3% vs 2yrs ago
-- Significantly outperforming the market; gaining 90 basis points of value share(3) in Q3
-- Mr Kipling's biggest ever Christmas
-- International sales(4) increased +33% compared to 2yrs ago
-- Upgrading FY21/22 profit expectations; Trading profit at least GBP145m(5) this year
Alex Whitehouse, Chief Executive Officer
" The strong momentum from the first half of the year continued
into the key Q3 trading period, with our brands growing by 11.3%
compared to two years ago. This was well ahead of the market across
all our categories and resulted in very encouraging share
gains.
"T his performance continues to underline the popularity of our
brands but also demonstrates the strength of our established
branded growth model, with many of our brands supported by
advertising campaigns and new product innovation during the
quarter."
" We're particularly pleased with the performance of our Sweet
Treats business. This was Mr Kipling's biggest Christmas ever, as
our Sweet Treats brands outperformed the market, growing 6.3%
compared to last year and 11.6% versus two years ago, helped by an
increased number of family gatherings over the festive period."
"Our overseas businesses performed particularly well with sales
up over 30% vs two years ago as we continue to execute our
expansion plans. All of our strategic international markets saw
growth, with sales of Sharwood's and Mr Kipling both well ahead of
the same period two years ago."
"With three strong quarters of trading now delivered and taking
good momentum into the final quarter, we are increasing our profit
expectations for this financial year. "
Q3 Sales % change vs 1 year vs 2 years
ago ago
Grocery Branded (2.9%) 11.2%
Non-branded (5.5%) (3.2%)
---------- -----------
Total (3.3%) 9.1%
Sweet Treats Branded 6.3% 11.6%
Non-branded (7.4%) (14.3%)
---------- -----------
Total 1.8% 2.4%
Group Branded (0.7%) 11.3%
Non-branded (6.4%) (8.9%)
---------- -----------
Total (1.8%) 7.0%
---------- -----------
Trading update
===============
The Group delivered strong and broad based branded growth across
both its Grocery and Sweet Treats businesses in the quarter, with
sales up 11.3% on a two year basis. Additionally, the Company
outperformed in all its categories, 3.5% ahead of the market
overall and gaining 90 basis points of value share in the period
compared to last year. On a year to date basis, Group sales grew by
7.3% and branded sales increased by 11.4% versus FY19/20.
In the Grocery business, many brands grew in double digit sales
terms versus two years ago, as branded revenue increased by 11.2%.
In particular, further sales growth in Bisto was driven by strong
execution instore and consumers trading up to premium Bisto Best
gravy for Christmas. Sharwood's also grew strongly across its wide
portfolio, due to continued growth of healthier ranges such as 30%
less fat cooking sauces and accompaniments including Poppadoms and
Chutneys. Nissin noodles exceptional momentum continued unabated,
driven by excellent consumer repeat purchase rates, with revenues
in the quarter up over 150% compared to two years ago.
Sweet Treats delivered top line branded growth of 11.6% compared
to two years ago, with both Mr Kipling and Cadbury cake
contributing to this strong performance. Cadbury cake grew sales
across its range of existing and new product ranges, the latter
driven by Fudge and Crunchie cake bars. Mr Kipling enjoyed its best
ever Christmas trading period, due to increased sales across all
its core cake ranges and also healthier products such as reduced
sugar Angel Slices. In overall terms, the Group's healthier product
ranges grew ahead of the wider market, up +13%.
Continued focus on executing our brands well online helped drive
growth ahead of the market with sales up over 90% in the quarter
versus two years ago and gaining 240 basis points of share.
As expected, Non-branded sales were lower in both the Grocery
and Sweet Treats businesses, due to lower foodservice and out of
home sales in Grocery and the strategic decision to exit lower
margin contracts in Sweet Treats.
Overseas, sales(4) in the quarter grew by 33% compared to two
years ago, thanks to progress in all the Group's strategic
international markets; Ireland, Australia, USA and Europe. On a
brand basis, this quarterly growth was substantially due to strong
sales for both Sharwood's and Mr Kipling. Following the successful
test in Canada, the first shipments of the Mr Kipling cake test in
the US have now been made and will go instore during the fourth
quarter. Sales compared to the prior year were (7%) lower, largely
due to pandemic related elevated volumes and stock buy in ahead of
the EU exit in Ireland.
Outlook
========
Following the delivery of three strong quarters of trading, and
taking good momentum into the final quarter, Trading profit for
this financial year is now expected to be at least GBP145m(5) and
adjusted profit before tax at least GBP125m(5) . Deleveraging is
expected to continue this year, as Net debt/EBITDA(6) progresses
towards the Group's 1.5x medium term target.
Looking ahead, the Group sees further opportunity for value
creation through the execution of its five point strategy. This
encompasses continuing to grow the core UK business using its
proven branded growth model, investing in its supply chain
infrastructure to increase productivity and efficiency, expanding
into new categories in the UK, building international businesses
with critical mass, and modest bolt on acquisitions to broaden the
existing portfolio.
This announcement contains inside information.
Ends
Further information
====================
Investors and analysts:
Duncan Leggett, Chief Financial Officer +44 (0) 1727 815 850
Richard Godden, Director of Investor Relations +44 (0) 1727 815
850
Media:
Headland
Ed Young +44 (0) 7884 666830
Jack Gault +44 (0) 7799 089357
Conference call
================
A conference call for investors and analysts hosted by Alex
Whitehouse, CEO and Duncan Leggett, CFO, will take place today, 20
January 2022, 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:
www.premierfoods.co.uk/investors/results-centre
Telephone number: 0800 376 7922 (UK toll free)
+44 20 7192 8000 (standard international access)
Conference ID: 2743908
Notes to editors:
1. All financial data detailed above is unaudited and has not
been subject to review by the Company's auditors.
2. All references to the 'quarter' or 'period' are for sales data
relating to the 13 weeks to 1 January 2022 and the comparative
periods, 13 weeks ended 26 December 2020 and 13 weeks ended
28 December 2019, as appropriate. Quarter 3 year to date sales
data is for the 39 weeks to 1 January 2022, 26 December 2020
or 28 December 2019 as appropriate.
3. Market share references are UK based and sourced from IRI,
12 weeks ended 25 December 2021.
4. International sales growth is stated on a constant currency
basis and is disclosed in the Grocery segment for reporting
purposes.
5. Current company compiled consensus for FY21/22 Trading profit:
GBP140.7m; Adjusted profit before tax: GBP119.3m.
6. Net debt/EBITDA referred to on a post-IFRS 16 basis.
Q3 Sales (GBPm) FY21/22 FY20/21 FY19/20 Change vs Change vs 2
1 yr ago yrs ago
Grocery
Branded 171.3 176.5 154.0 (2.9%) 11.2%
Non-branded 26.2 27.7 27.1 (5.5%) (3.2%)
------- ------- ------- --------- -----------
Total 197.5 204.2 181.1 (3.3%) 9.1%
Sweet Treats
Branded 58.5 55.0 52.4 6.3% 11.6%
Non-branded 24.6 26.6 28.7 (7.4%) (14.3%)
------- ------- ------- --------- -----------
Total 83.1 81.6 81.1 1.8% 2.4%
------- ------- ------- --------- -----------
Group
Branded 229.8 231.5 206.4 (0.7%) 11.3%
Non-branded 50.8 54.3 55.8 (6.4%) (8.9%)
------- ------- ------- --------- -----------
Total 280.6 285.8 262.2 (1.8%) 7.0%
------- ------- ------- --------- -----------
Q3 YTD Sales FY21/22 FY20/21 FY19/20 Change vs Change vs
(GBPm) 1 yr ago 2 yrs ago
Grocery
Branded 416.2 449.6 372.1 (7.4%) 11.8%
Non-branded 65.4 71.4 72.9 (8.4%) (10.2%)
------- ------- ------- ----------- -----------
Total 481.6 521.0 445.0 (7.6%) 8.2%
Sweet Treats
Branded 158.5 149.2 143.9 6.2% 10.2%
Non-branded 34.6 37.1 40.0 (6.9%) (13.6%)
------- ------- ------- ----------- -----------
Total 193.1 186.3 183.9 3.6% 5.0%
------- ------- ------- ----------- -----------
Group
Branded 574.7 598.8 516.0 (4.0%) 11.4%
Non-branded 100.0 108.5 112.9 (7.9%) (11.4%)
------- ------- ------- ----------- -----------
Total 674.7 707.3 628.9 (4.6%) 7.3%
------- ------- ------- ----------- -----------
Certain statements in this management statement 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.
A Premier Foods image gallery is available using the following
link:
http://www.premierfoods.co.uk/media/image-gallery
About Premier Foods
As one of Britain's largest food producers, we're passionate
about food and believe each and every day we have the opportunity
to enrich life for everyone. Premier Foods employs over 4,000
people operating from 16 sites across the country, supplying a
range of retail, wholesale, foodservice and other customers with
our iconic brands which feature in millions of homes every day.
Through some of the nation's best-loved brands, including
Ambrosia, Batchelors, Bisto , Loyd Grossman, Mr. Kipling, Oxo and
Sharwood's, we're creating great tasting products that contribute
to healthy and balanced diets, while committing to nurturing our
people and our local communities, and going further in the pursuit
of a healthier planet, in line with our Purpose of 'Enriching Life
Through Food'.
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END
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