TIDMPFD TIDMIRSH
RNS Number : 1899N
Premier Foods plc
19 January 2023
19 January 2023
Premier Foods plc (the "Company" or the "Group")
A strong Quarter 3, well on track to deliver full year expectations
Premier Foods today provides its Quarter 3 trading update for
the thirteen weeks ended 31 December 2022
-- Q3 Group sales up 12.0% versus prior year; Q3 Branded sales
up 8.8%
-- Particularly strong Grocery performance, Q3 sales up 17.4%
-- Grocery business continues to grow faster than its markets,
gaining 66 basis points of value share(1)
-- Sweet Treats Q3 sales down (0.9%)
-- International sales up 10%(2) , another quarter of double-digit
growth
-- Announcing proposed closure of loss-making, predominantly
non-branded, Knighton manufacturing site
-- Well on track to deliver on FY22/23 expectations
Note: Headline results presented for the quarter exclude The
Spice Tailor unless otherwise stated
Alex Whitehouse, Chief Executive Officer
"We delivered a strong trading performance in our important
third quarter, with sales growth of 12% compared to the same period
last year. These results illustrate the continuing appeal of our
portfolio of market-leading brands in such a challenging
environment and demonstrate the strength and resilience of our
branded growth model."
"Our major Grocery brands produced a particularly good set of
results for us, continuing to grow faster than the market, taking
66 basis points of share(1) . Across the country, people got
cooking again this Christmas, demonstrating that the Best
Restaurant in Town really is at home. Many of our leading brands
grew strongly, with established seasonal favourites including
Ambrosia custard and new launches such as Bisto pigs-in-blankets
gravy granules all proving very popular. Mr Kipling had another
strong performance, with the introduction of our non-HFSS
Deliciously Good Festive Pies helping to grow our Mince Pie market
share. Meanwhile, our International business has now reported
another quarter of double-digit sales growth, with Sharwood's
growing over 20% following major new listings in Canada."
"Input cost inflation remains at elevated levels, and we
continue to take action to offset this inflation through a range of
measures. With strong trading momentum as we enter our final
quarter of the year, and with more brand investment and new product
launches to come, we are well on track to deliver on expectations
for the full year."
Trading update
================
Grocery
The Grocery business enjoyed a particularly strong quarter as
total sales increased by 17.4% and branded sales grew by 15.5%
versus last year. This growth was broad based, with all of the
Group's major brands performing strongly; demonstrating the
continued effectiveness of the Group's proven branded growth model.
Pricing contributed a significant proportion of revenue growth in
the quarter and demand was particularly buoyant running into the
key festive period. Sales of The Spice Tailor again grew by
double-digit and its integration into the Group continues to
progress well. Additionally, the 'Best Restaurant in Town'
campaign, which helps people cook and prepare tasty and affordable
meals, has been well received, and will be extended further in Q4 .
Non-branded sales grew by 29.6% due to pricing benefit in retailer
branded product categories and continued recovery in out of home
sales compared to the prior year.
Sweet Treats
Sweet Treats sales were (0.9%) lower in the period, with branded
sales down (10.8%) and non-branded sales up 22.8%. Mr Kipling sales
increased in the quarter helped by growth of Angel, Lemon and
Chocolate slices, and the launch of new non-HFSS(3) Mr Kipling
Deliciously Good Festive Pies delivered market share gains in the
Mince Pie category. Cadbury cake was impacted by some unscheduled
maintenance associated with one plant line, which has since been
completed and full production now resumed. The continued growth
trend in Non-branded Sweet Treats was again due to contract gains
in pies and tarts as well as pricing benefits.
International
International continues to progress strongly, reporting another
quarter of double-digit sales growth in Quarter 3. Sales increased
by 10%(2) in the period reflecting growth of Sharwood's and Mr
Kipling, notably in Canada and Europe. Sharwood's sauces growth was
particularly strong in Canada due to new listings in Walmart. In
Australia, Mr Kipling cake again increased sales in double-digit
percentage terms and continues to grow share and household
penetration. Following a successful test of Mr Kipling in US Target
stores, the Group is now exploring opportunities for further
distribution expansion.
Proposed closure of Knighton manufacturing site
================================================
Knighton manufactures predominantly non-branded powdered
beverages, so is not aligned to the Group's branded growth model
strategy and is marginally unprofitable at Trading profit.
Following a comprehensive review of the site, the Company is
entering into colleague consultation on its proposed closure.
Under these proposals, effective from mid-2023, non-branded
revenue contracts of c.GBP27m sales will be carefully managed for
exit. Cash exceptional costs of c.GBP10m associated with closure
are expected to be incurred in FY23/24. This proposed closure will
be accretive to Trading profit and increase branded sales mix by
270 basis points.
It is recognised that this will be an unsettling time for those
c.300 colleagues who are potentially affected by these proposals,
and they will be fully supported and consulted with throughout the
process.
Outlook
========
The Group has delivered another strong quarter of trading,
further demonstrating the strength and resilience of its branded
growth model, set against the backdrop of a particularly
challenging consumer environment. Input cost inflation remains at
elevated levels and is being offset through a combination of cost
savings and annual price increases. With strong momentum entering
the fourth quarter of the year, and more brand investment and new
product launches to come, the Group remains well on track to
deliver on expectations for this financial year. In the
medium-term, the Company expects to make further significant
strategic progress, through delivery of its five pillar growth
strategy.
Ends
As one of the UK's largest food businesses, 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 15 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'.
Contacts:
Institutional investors and analysts:
Duncan Leggett, Chief Financial Officer
Richard Godden, Director of Investor Relations
Investor.relations@premier foods.co.uk
Media enquiries:
Lisa Kavanagh, Director of Communications
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, 19
January 2023, 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 640 6441 (UK toll free)
+44 20 3936 2999 (standard international access)
Access code: 216675
- Ends -
This announcement may contain "forward-looking statements" that
are based on estimates and assumptions and are subject to risks and
uncertainties. Forward-looking statements are all statements other
than statements of historical fact or statements in the present
tense, and can be identified by words such as "targets", "aims",
"aspires", "assumes", "believes", "estimates", "anticipates",
"expects", "intends", "hopes", "may", "would", "should", "could",
"will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. Any
forward-looking statements in this announcement are made based upon
Premier Foods' estimates, expectations and beliefs concerning
future events affecting the Group and subject to a number of known
and unknown risks and uncertainties. Such forward-looking
statements are based on numerous assumptions regarding the Premier
Foods Group's present and future business strategies and the
environment in which it will operate, which may prove not to be
accurate. Premier Foods cautions that these forward-looking
statements are not guarantees and that actual results could differ
materially from those expressed or implied in these forward-looking
statements. Undue reliance should, therefore, not be placed on such
forward-looking statements. Any forward-looking statements
contained in this announcement apply only as at the date of this
announcement and are not intended to give any assurance as to
future results. Premier Foods will update this announcement as
required by applicable law, including the Prospectus Rules, the
Listing Rules, the Disclosure and Transparency Rules, London Stock
Exchange and any other applicable law or regulations, but otherwise
expressly disclaims any obligation or undertaking to update or
revise any forward-looking statement, whether as a result of new
information, future developments or otherwise.
Notes to editors:
Q3 Sales FY22/23 The Spice FY22/23 FY21/22 Change vs
(GBPm) Tailor 1 year ago
(including (excluding (excluding
TST) TST) TST)
Grocery
Branded 201.6 3.7 197.9 171.3 15.5%
Non-branded 34.0 - 34.0 26.2 29.6%
----------- --------- ----------- -------- -----------
Total 235.6 3.7 231.9 197.5 17.4%
Sweet Treats
Branded 52.2 - 52.2 58.5 (10.8%)
Non-branded 30.2 - 30.2 24.6 22.8%
----------- --------- ----------- -------- -----------
Total 82.4 - 82.4 83.1 (0.9%)
Group
Branded 253.8 3.7 250.1 229.8 8.8%
Non-branded 64.2 - 64.2 50.8 26.3%
----------- --------- ----------- -------- -----------
Total 318.0 3.7 314.3 280.6 12.0%
----------- --------- ----------- -------- -----------
Q3 YTD Sales FY22/23 The Spice FY22/23 FY21/22 Change vs
(GBPm) Tailor 1 year ago
(including (excluding (excluding
TST) TST) TST)
Grocery
Branded 458.8 5.0 453.8 416.2 9.0%
Non-branded 80.8 - 80.8 65.4 23.5%
----------- --------- ----------- -------- -----------
Total 539.6 5.0 534.6 481.6 11.0%
Sweet Treats
Branded 154.5 - 154.5 158.5 (2.5%)
Non-branded 43.7 - 43.7 34.6 26.4%
----------- --------- ----------- -------- -----------
Total 198.2 - 198.2 193.1 2.6%
Group
Branded 613.3 5.0 608.3 574.7 5.9%
Non-branded 124.5 - 124.5 100.0 24.5%
----------- --------- ----------- -------- -----------
Total 737.8 5.0 732.8 674.7 8.6%
----------- --------- ----------- -------- -----------
1. Market share data sourced from IRI, 12 weeks ended 31 December
2022
2. International sales stated on a constant currency basis
3. Non-HFSS: Food or drinks not high in fat, salt or sugar
4. Sales data is for the thirteen weeks to 31 December 2022 and
the comparative period, the thirteen weeks ended 1 December
2022. Headline results in the statement are stated excluding
The Spice Tailor
5. All financial data detailed above is unaudited and has not been
subject to review by the Company's auditors
6. Additional notes on the Knighton manufacturing site proposed
closure:
-- Group revenue branded mix will increase by c.270 basis points to c.89% (on FY21/22 pro forma
basis)
-- Cash exceptionals of c.GBP10m are expected to be incurred in FY23/24 to cover redundancy and
restructuring costs. These costs will be provided for in FY22/23 under non-trading items within
Operating profit. There will be no cash exceptional costs incurred in FY22/23.
-- Certain branded products currently manufactured at Knighton will be transferred to other Group
sites, with no changes expected to take effect until mid-2023
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTFLFETLVITLIV
(END) Dow Jones Newswires
January 19, 2023 02:00 ET (07:00 GMT)
Premier Foods (LSE:PFD)
Historical Stock Chart
From May 2024 to Jun 2024
Premier Foods (LSE:PFD)
Historical Stock Chart
From Jun 2023 to Jun 2024
