Member Article

Brands grow trading profit at Premier Foods

Premier Foods, manufacturers of brands such as Hovis and Batchelors’, have reported a sizeable 50% jump in trading profits.

The producer, that operates sites throughout the North West and Yorkshire, reported a 4% rise in sales of its “Power Brands,” such as Mr Kipling and Hovis.

Underlying branded grocery sales were at £343.3m in the first half of 2013, up from £339.3m the year before.

Total underlying business sales were actually down 0.9%, year-on-year.

Gavin Darby, CEO, said: “A 50% increase in Trading profit is a very encouraging result given the highly competitive environment. This shows that our turnaround strategy is delivering at the bottom line. We have now grown sales in our Grocery Power Brands for six consecutive quarters as we continue to build partnerships with our customers, deepen our understanding of consumers and invest more effectively in supporting our brands.

“We have already completed the actions to deliver the promised £20m of overhead cost savings for 2013 and continue to keep a tight control over costs. The restructuring of our bread and milling business is ahead of plan and we are taking the decisions necessary to create a more sustainable platform for this business.

“The second half will see further plans to grow our Power Brands, in addition to a new £10m of cost savings that we have now identified from our efforts to reduce complexity. As a result, we now expect Full Year Trading Profit to be around the top of market expectations.

“Looking further forward, we will continue to drive profitable top-line growth by focusing on growing our categories supported by ongoing cost savings from reducing complexity. At the right time, we will address our capital structure - from a position of growing strength given the delivery of our turnaround plan and the performance of our Power Brands. I am excited by the potential offered by Premier Foods in the longer term.”

This was posted in Bdaily's Members' News section by Tom Keighley .