Saturday 17 August 2019

'Solid' progress for Premier Foods

Ellie Donnelly

Ellie Donnelly

Premier Foods has reported ‘solid strategic progress’ for the first half of the year, after the food company recorded a return to revenue growth of 1.5pc in the six months to 30 September.

Overall revenue in the six month period was £353m (€395m), trading profit at the group was £48m – unchanged year-on-year – while the company made an operating profit of £22.5m, an increase of 2.3pc on the same period last year.

International revenue at the group behind brands such as Bisto, Batchelors, Loyd Grossman, and Mr Kipling, increased by 23pc year-on-year in the six month period, driven by the group’s partnerships with Nissin and Mondelez International.

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.

"We are pleased to report a return to revenue growth of 1.5pc in the first half of the year. A key highlight was our strong performance in the second quarter, with volume driven revenue up 6.2pc after a challenging first quarter," Gavin Darby, CEO of Premier Foods, said.

During the year the company performed a cost efficiency programme, which they said was on track to deliver the "expected benefits.”

"Overall, we continue to expect the business to make progress in the second half of the year and our expectations for the full year remain unchanged," Mr Darby said.

In May this year Premier Foods signed a deal with Mondelēz International to renew the company's long-standing licence to produce and market Cadbury-branded cake.

The British food manufacturer also extended the geographic reach of the licensing agreement with Mondelēz to 46 countries, including the UK, Ireland, Australasia, United Arab Emirates, South Africa, Canada, Japan, China, India, Asia Pacific, Caribbean and additional countries in the Middle East.

The licence will run until 2022, with an option for the company to extend this to 2025, subject to meeting certain performance criteria.

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