Trading Update
Premier Foods plc
06 July 2006
Premier Foods plc ('Premier')
Trading update for the six months to 1 July 2006
Premier continues to deliver strong branded sales growth and trading remains in
line with its expectations
Premier, one of the leading suppliers of grocery products in the UK, is
providing the following update for the six months ended 1 July 2006.
We expect like-for-like sales growth for the Group to be in line with our
targets, underpinned by the performance of our brands. The overall rate of
growth, including acquisitions, is further enhanced by the performance of Quorn,
which has seen sales growth accelerate.
Robert Schofield, Premier Foods plc CEO, said:
'The first half of 2006 has reflected the continued success of our strategy of
growing our branded sales with Quorn, Branston, Loyd Grossman and Ambrosia all
continuing to grow strongly. Cost pressures remain an issue but we are
confident the resilience of our business will continue to enable us to offset
these pressures. Our expectations for the rest of the year remain unchanged.'
Convenience Foods, Pickles, Sauces and Meat Free
Sales for this product group are anticipated to be significantly ahead of the
same period in 2005 due to the acquisitions of Quorn and Cauldron. We are
delighted at the progress of Quorn which has seen double digit sales growth in
the first half, driven by increased advertising and the launch of new products.
After adjusting for the disposal of the Jonker Fris business, like-for-like
sales are anticipated to be broadly in line with sales in the first half of 2005
of £168m. The sales pattern remains as in 2005 with the growth of Branston and
Loyd Grossman offset by lower sales of our smaller brands and own label
convenience foods.
Branston Baked Beans have consolidated their market share and we are encouraged
by continuing increases in household penetration and distribution ahead of
further TV advertising.
Spreads, Desserts & Beverages
Sales for this product group are anticipated to be strongly ahead of the sales
of £132m for the first half of 2005. We are pleased by the strong growth of
Ambrosia, which has been driven by the launch of new products and growth of
snacking formats, and new own label contracts.
Fresh Produce
As we indicated at the time of our AGM announcement, sales at our Fresh Produce
division have stabilised and profitability has improved versus the second half
of last year.
In addition, we are pleased to be able to report that our insurance claim in
respect of the fire at our Bury St Edmunds factory has now been fully settled.
Interim results for the six months ended 1 July 2006 will be announced on 5
September 2006. We will host a presentation to analysts at 9am at ABN AMRO, 250
Bishopsgate, London, EC2M 5AA.
Comparative segmental analysis for the first and second halves of 2005, restated
to reflect the disposal of our tea and Jonker Fris businesses, have been placed
on our website.
Enquiries:
Paul Thomas, Finance Director
Gwyn Tyley, Investor Relations Manager
Premier Foods plc Tel: 01727 815 850
Michael Berkeley
Sara Batchelor
Justin Griffiths
Citigate Dewe Rogerson Tel: 020 7638 9571
Notes to Editors
Premier Foods plc is a leading UK manufacturer and marketer of grocery products.
Premier manufactures and markets grocery products for the retail grocery and
out of home channels in two principal product segments:
• Convenience Foods, Pickles, Sauces and Meat Free; and
• Spreads, Desserts and Beverages.
Premier also operates a Fresh Produce packing and marketing business in the
United Kingdom, supplying the retail grocery, out of home and food manufacturing
channels.
Premier's branded products include Quorn and Cauldron meat alternatives,
Ambrosia custard and milk puddings, Bird's and Angel Delight desserts, Branston
pickles, baked beans and pasta, Hartley's preserves and desserts, Gale's honey
and lemon curd, Crosse & Blackwell convenience foods, Sun-Pat peanut butter,
Sarsons vinegar, Haywards pickles, Smash instant mashed potato, Marvel powdered
milk creamer and Waistline salad dressings, soups and cooking sauces. In
addition, the Company produces Loyd Grossman cooking sauces and soups under
licence. Premier also produces a range of retailer brand products, principally
for the major multiple retailers.
Premier's current market capitalisation is £778 million (at market close on 5
July 2006).
This information is provided by RNS
The company news service from the London Stock Exchange