TIDMPFD TIDMIRSH
RNS Number : 7508F
Premier Foods plc
17 July 2019
17 July 2019
Premier Foods plc (the "Company" or the "Group")
Trading update for the 13 weeks ended 29 June 2019
-- Q1 Group sales up +1.1%, Q1 Branded sales up +2.9%
-- Q1 UK sales up +2.6%, Q1 Branded UK sales up +4.9%
-- Market share gains in 7 out of 8 top brands
-- Increased marketing investment this year; Mr Kipling and
Batchelors already aired - more to come
-- Sales of Mr Kipling, Group's largest brand, up +10%
-- Expectations for the full year remain unchanged
Alastair Murray, Acting Chief Executive Officer
"I am pleased to report an encouraging start to the year with
Group sales up +1.1% and ahead +2.6% in the UK. As we previously
noted, we are increasing our consumer marketing investment this
year and both Mr Kipling and Batchelors have already benefitted
from TV advertising campaigns in the first quarter. Many of our
largest brands have built on strong category positions and grown
market share, and we achieved branded growth in the quarter of
nearly 3%. These figures provide evidence that the Company's
strategy is delivering results. Our expectations for the full year
remain unchanged."
Q1 Sales % change Grocery Sweet Treats Group
Branded +1.1% +7.1% +2.9%
Non-branded +2.2% (37.2%) (8.3%)
-------- ------------- -------
Total +1.3% +0.6% +1.1%
-------- ------------- -------
Trading update
===============
In the first quarter of the year, Group sales increased +1.1%
compared to the prior year, with branded sales up +2.9%. In the UK,
total sales grew +2.6% and branded sales advanced +4.9%. Both
Grocery and Sweet Treats have delivered market share gains during
the quarter, with notably good performances seen from Ambrosia,
Sharwood's, Bisto and Cadbury cake.
Grocery reported sales of GBP123.1m in the quarter, +1.3% up on
the prior year. The Flavourings & Seasonings category was
strong, growing over 10% compared to the prior year due to a softer
comparative period in 2018 when the UK experienced exceptionally
warm weather. Accordingly, Bisto and Paxo both delivered strong
revenue growth and market share gains in the quarter. Looking
forward to the second quarter, Bisto will be launching a new range
of convenient ready to use Gravy pots. Ambrosia also benefitted
from relatively cooler weather in June, gaining share in a growing
category.
In cooking sauces, Sharwood's and Loyd Grossman saw double-digit
growth reflecting improved promotional plans, distribution gains
and range expansion of curry pastes. The Group saw growth in the
Quick Meals, Snacks & Soups category as Nissin Soba noodles
continued their very strong trajectory from last year, more than
doubling sales and volumes, while Batchelors sales were slightly
lower due to the phasing of promotional activity.
Non-branded Grocery sales grew +2.2% as contract wins in cooking
sauces and stuffing were partly offset by Knighton Foods which saw
some contract exits and customer de-stocking.
In Sweet Treats, sales increased by +0.6% against the same
period a year ago with branded sales up +7.1%. Mr Kipling continued
to deliver strong growth, with Group sales up 10% and benefitting
from the brand relaunch it received during 2018 but also further TV
advertising in the first quarter this year. A new premium range of
'Signature' cakes is set to be launched In the second quarter to
support Mr Kipling growth through the remainder of the year.
Cadbury cake sales grew in the UK, due to both the later timing
of Easter compared to 2018 and also due to improved seasonal ranges
for the Easter period. The Group also launched a range of new
Cadbury Dairy Milk slices in the quarter. Non-branded Sweet Treats,
(representing 9% of Sweet Treats sales value) were (37.2%) down in
the period due to the exit of lower margin cake contracts.
International sales were, as expected, held back primarily due
to slower sales in Ireland and were (18%) down compared to the
prior year. This was due to the unwind of Brexit related stock in
Irish customers' supply chains. The International business is,
however, expected to return to sales growth in subsequent
quarters.
IFRS 16 - Leases
=================
The Group is adopting the modified retrospective approach for
the new accounting standard, IFRS 16 - Leases, as previously
stated. The first accounting period which the Group will adopt this
change is its Interim results for the 26 weeks ending 28 September
2019. The main changes to the Company's financial statements are
with respect to Net debt and EBITDA, which would have been
approximately GBP20m and GBP3m higher respectively than reported as
at 30 March 2019.
Board update
=============
As previously announced, Keith Hamill, Non-executive Chairman,
will be retiring from the Board at the Company's AGM being held
today. Richard Hodgson, Senior Independent Non-Executive Director
is leading the search for a new Non-executive Chairman, a further
Independent Non-executive Director and a permanent CEO, and the
Company will provide further updates in due course.
Outlook
========
The Group's strategy remains to improve operating performance
through driving profitable revenue growth and delivering cost
efficiencies to generate cash. Its expectations for progress in the
full year remains unchanged, and as previously communicated,
weighted to the second half of the year.
The Group's previously announced strategic review remains
ongoing; the outcome of which will be communicated in due
course.
Ends
For further information, please contact:
Institutional investors and analysts:
Alastair Murray, Acting CEO & Chief Financial +44 (0) 1727 815
Officer 850
Richard Godden, Director of Investor Relations +44 (0) 1727 815
& Treasury 850
Media enquiries:
Maitland/AMO
Neil Bennett
Joanna Davidson +44 (0) 20 7379 5151
Conference Call
A conference call for investors and analysts will take place on
17 July 2019 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.
Telephone number: +44 20 7192 8000
Telephone number (UK Toll free) 0800 376 7922
Conference ID: 1963129
http://www.premierfoods.co.uk/investors/results-centre
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 29 June 2019 or 30 June 2018 as appropriate.
Q1 Sales (GBPm) FY19/20 FY18/19 % Change
Grocery
Branded 101.8 100.8 +1.1%
Non-branded 21.3 20.8 +2.2%
-------- -------- ---------
Total 123.1 121.6 +1.3%
Sweet Treats
Branded 47.0 43.9 +7.1%
Non-branded 4.7 7.5 (37.2%)
-------- -------- ---------
Total 51.7 51.4 +0.6%
-------- -------- ---------
Group
Branded 148.8 144.6 +2.9%
Non-branded 26.0 28.4 (8.3%)
-------- -------- ---------
Total 174.8 173.0 +1.1%
-------- -------- ---------
2. Market share data is sourced from IRI, 13 weeks ended 29 June 2019.
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.
END
TSTUNRBRKUABAAR
(END) Dow Jones Newswires
July 17, 2019 02:00 ET (06:00 GMT)
Premier Foods (LSE:PFD)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Premier Foods (LSE:PFD)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024
