Mr Kipling maker Premier Foods returns to profit - just

Lloyd Doyle
November 15, 2017

Gavin Darby, CEO of Premier Foods, reported the company's worldwide business also continued to grow.

Premier Foods reported that its worldwide revenues have progressed at an annual growth rate of 18% in the last three years.

"We are pleased to report a return to revenue growth of 1.5% in the first half of the year".

Bisto, the group's second largest brand, performed well, delivering revenue growth, while Angel Delight, one of the group's smaller brands grew by 30% in the period, benefitting from the launch of convenient ready to eat pots.

Premier Foods posted a 1.5% revenue growth of £353m ($464m) in the 26 weeks to September 30, with the strongest growth coming from the second quarter, with revenue jumping 6.2% (versus a 3.1% drop in Q1). We completed the issue of a new £210m high yield bond in June and our Net debt was £21m lower than the same point past year; a little ahead of our plans.

At the end of the six month period the company's net debt was £535.3m, an improvement of £20.7m on the same period last year, according to the group's half year results.

It added that cost inflation, largely driven by the Brexit-hit pound, would continue to rise in the second half of the year, but at a lower rate.

Shares in Premier Foods were up 4.8pc to 38p in early trading.

"The cost efficiency programme we launched earlier this year is on track to deliver the expected benefits", said Darby.

Chief executive Gavin Darby said partnerships with global giants Mondelez, for which it produces Cadbury cakes, and Nissin were responsible for 40pc of growth in Premier Foods' second quarter, with total revenues up 6.2pc in the same period.

"Our global business continues to go from strength to strength and saw revenue growth of +23 per cent in the first half of the year". We completed the issue of a new GBP210 million high yield bond in June and our net debt was GBP21 million lower than the same point previous year; a little ahead of our plans.

Other reports by Iphone Fresh

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