Monday 16 September 2019

Sales up at Mr Kipling owner, but Brexit impacts Irish performance

Photo: Bloomberg
Photo: Bloomberg
Ellie Donnelly

Ellie Donnelly

Mr Kipling owner Premier Foods has seen its sales rise 1.1pc in the three months to 29 June.

The increase was driven by a strong performance in the UK, it’s domestic market, where sales grew 2.6pc during the period, according to a trading update from the group.

However, international sales were down 18pc year-on-year, primarily because of slower sales in Ireland.

This was due to the unwind of Brexit related stock in Irish customers' supply chains.

The international business is expected to return to sales growth in subsequent quarters, the group said.

Sales of the group's branded products were up 2.9pc during the period, while sales of non-branded items were down 8.3pc year-on-year.

Premier Foods grocery division reported sales of £123.1m (€136m) in the quarter, up 1.3pc up on the prior year.

Meanwhile, the flavourings and seasonings category was strong, growing over 10pc year-on-year due to a softer comparative period in 2018 when the UK experienced exceptionally warm weather.

Alastair Murray, acting CEO, said: "I am pleased to report an encouraging start to the year with group sales up 1.1pc and ahead 2.6pc in the UK."

"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 3pc. These figures provide evidence that the company's strategy is delivering results."

Looking forward, the company said its 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 remain unchanged, and weighted to the second half of the year.

Online Editors

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