TIDMPFD TIDMIRSH
RNS Number : 2091G
Premier Foods plc
23 July 2021
23 July 2021
Premier Foods plc (the "Company" or the "Group")
Very encouraging start to the year; Q1 trading and full year adjusted
PBT at top end of expectations
Premier Foods today provides its Quarter 1 trading update for
the thirteen weeks ended 3 July 2021; the table below sets out
sales performance compared to the same period against the prior
year and two years ago.
Q1 Sales % change vs 1 year vs 2 years
ago ago
Grocery Branded (19.6%) 12.0%
Non-branded (6.0%) (10.1%)
---------- -----------
Total (17.9%) 8.2%
Sweet Treats Branded 3.2% 3.7%
Non-branded (16.2%) (14.9%)
---------- -----------
Total 1.4% 2.0%
Group Branded (13.9%) 9.3%
Non-branded (8.0%) (10.9%)
---------- -----------
Total (13.2%) 6.3%
---------- -----------
-- Q1 Group sales up 6.3% versus two years ago - at top end of
Group's expectations, Branded sales up 9.3%
-- As expected, sales versus prior year lapping exceptional circumstances of first lockdown
-- Grocery excluding out of home channels up 13% compared to two years ago
-- Strong International performance, building on successful
prior year, up 17%(5) on two year basis
-- Sales from strategy of expanding into new categories already
delivered over GBP6m in last 12 months
-- Full year adjusted profit before tax now expected to be at top end of Group expectations
Alex Whitehouse, Chief Executive Officer
"We have made a very encouraging start to the year, with Quarter
1 sales at the top end of our expectations, as our brands again
benefited from the introduction of new products and continued
marketing investment. When compared to two years ago, our branded
sales increased by over 9% with grocery brands up 12%, continuing
the strong momentum of recent years. As expected, overall sales
were down compared to the same quarter a year ago when we saw
exceptionally high grocery volumes during the first national
lockdown."
"Sales online through our retailers e-commerce platforms
remained at elevated levels and nearly twice that of two years ago,
retaining most of the gains from last year. B randed Sweet Treats
grew year on year, with Mr Kipling up 7.5%, benefiting from our
range of low sugar options and the ongoing success of the premium
Signature range. I'm very pleased by the progress of our healthier
options ranges, such as Sharwood's low fat cooking sauces, which
have grown at over twice the rate of our branded portfolio, as
consumers continue with their recently adopted good healthier
eating habits . International also performed particularly well,
building on the very strong gains from last year, growing by +17%
on a two year basis, as we continue to build sustainable,
profitable overseas businesses."
"With our continued strong trading momentum and the
substantially lower coupon of the new fixed rate notes at 3.5%, we
now expect to deliver adjusted Profit Before Tax at the top end of
our expectations for FY21/22."
Trading update
===============
Total sales in Q1 over a two year basis grew 6.3%, at the top
end of the Group's 5-6% expected range, while Branded sales
increased by 9.3%. This branded performance demonstrates further
evidence that the Group's brand building model is delivering
consistent growth. Compared to the prior year, sales were, as
expected, lower as the Group lapped strong comparatives when UK
households consumed the majority of their meals at home. Online
sales were similar to the high levels seen last year and nearly
double that of two years ago.
The Group's strategy of delivering growth through entering new
categories is gathering pace; over the last twelve months, sales
from product ranges such as Mr Kipling and Cadbury baking mixes,
Cape Herb & Spice and Oxo Rubs and Marinades delivered over
GBP6m.
Grocery
In Grocery, the continued benefits of investing behind the
Group's brands and bringing new products to market have resulted in
particularly strong progress for Ambrosia, Bisto, Oxo, Sharwood's
and Paxo which have all grown in double digit percentage terms
compared to two years ago. Sharwood's is a leading example of this;
it has delivered two year sales growth of 25%, gained market share
and increased household penetration. The quarter saw Sharwood's
receive further TV advertising, the launch of new Vegan cooking
sauces and it benefitted from consumers who have discovered the
brand during lockdown. Nissin noodles, the market leader in
authentic noodles in a pot, delivered yet another outstanding
quarter, growing sales by over 160% over the last two years and
delivering further market share gains. Non-branded sales in Grocery
were lower compared to two years ago, reflecting a slow recovery in
the Group's out of home businesses in the quarter, partly offset by
higher sales in retailer channels.
Sweet Treats
Sweet Treats branded sales increased by 3.2% versus a year ago
as Mr Kipling continued to grow strongly, building on its best ever
sales in FY20/21, with sales up 7.5% in the quarter. This reflected
further TV advertising, a strong performance from healthier product
ranges such as 30% less sugar Angel Slices and new product launches
under the premium Signature collection. Cadbury cake sales were
impacted by the earlier timing of Easter in prior years while lower
margin non-branded sales declined due to prior year contract
exits.
International
The International business saw further excellent progress with
sales up 2%(5) as it continued to benefit from its revised strategy
and building on its successful FY20/21 when sales in the full year
grew by 23%(5) . The application of the Group's brand building
strategy in Ireland is gathering pace; new products such as Bisto
Southern Style gravy, Oxo meat free stock cubes and Mr Kipling
Signature cakes have delivered market share gains while recent
launches into the Quick Meals Snacks & Soups and Home Baking
categories are expanding further. In North America, the trial of Mr
Kipling cakes in Canada has delivered encouraging results with the
planned rollout to full national distribution in the second half of
the year. In the USA, the business continues to work with Weston
Foods as it prepares for the launch of Mr Kipling, building on
insights from the Canada trial.
Outlook
========
The Group has made a very encouraging start to the year with two
year sales growth at the top of its targeted range for Q1. With the
continued benefits from the Company's Branded growth model strategy
and a material reduction in interest costs from the 3.5%, GBP330m
Fixed Rate bond issued in Q1, adjusted PBT for FY21/22 is now
expected to be at the top end of its expectations.
Ends
For further information, please contact:
Institutional 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 enquiries:
Headland
Ed Young +44 (0) 7884 666830
Jack Gault +44 (0) 7799 089357
Conference Call
A conference call for investors and analysts will take place on
23 July 2021 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: 1586379
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 3 July 2021, 27 June
2020 or 29 June 2019 as appropriate.
Q1 Sales (GBPm) FY21/22 FY20/21 FY19/20 Change Change
vs 1 year vs 2 years
ago ago
Grocery
Branded 114.1 141.8 101.8 (19.6%) 12.0%
Non-branded 19.1 20.3 21.3 (6.0%) (10.1%)
------- ------- ------- ---------- -----------
Total 133.2 162.1 123.1 (17.9%) 8.2%
Sweet Treats
Branded 48.7 47.2 47.0 3.2% 3.7%
Non-branded 4.0 4.8 4.7 (16.2%) (14.9%)
------- ------- ------- ---------- -----------
Total 52.7 52.0 51.7 1.4% 2.0%
------- ------- ------- ---------- -----------
Group
Branded 162.8 189.0 148.8 (13.9%) 9.3%
Non-branded 23.1 25.1 26.0 (8.0%) (10.9%)
------- ------- ------- ---------- -----------
Total 185.9 214.1 174.8 (13.2%) 6.3%
------- ------- ------- ---------- -----------
2. Market share data sourced from IRI, 13 weeks ended 27 June 2020.
3. Online channel data sourced from Kantar Worldpanel, 12 weeks ended 13 June 2021
4. Household penetration data sourced from Kantar Worldpanel, 12 weeks ended 13 June 2021.
5. International sales stated on a constant currency basis
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END
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(END) Dow Jones Newswires
July 23, 2021 02:00 ET (06:00 GMT)
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