Premier Foods: Released Q1-2022 Trading Update

London / UK. (pf) British Premier Foods PLC released its First Quarter Trading Update for the thirteen weeks ended 02 July 2022. Summary:

  • Q1 Group sales up 6.3 percent versus two years ago – at top end of Group’s expectations, Branded sales up 9.3 percent
  • As expected, sales versus prior year lapping exceptional circumstances of first lockdown
  • Grocery excluding out of home channels up 13 percent compared to two years ago
  • Strong International performance, building on successful prior year, up 17 percent on two year basis
  • Sales from strategy of expanding into new categories already delivered over GBP 6m in last 12 months
  • Full year adjusted profit before tax now expected to be at top end of Group expectations

Chief Executive’s Commentary

Alex Whitehouse, Chief Executive Officer: «We have made a very encouraging start to the year, with Quarter 1 sales at the top end of our expectations, as our brands again benefited from the introduction of new products and continued marketing investment. When compared to two years ago, our branded sales increased by over 9 percent with grocery brands up 12 percent, continuing the strong momentum of recent years. As expected, overall sales were down compared to the same quarter a year ago when we saw exceptionally high grocery volumes during the first national lockdown.»

«Sales online through our retailers e-commerce platforms remained at elevated levels and nearly twice that of two years ago, retaining most of the gains from last year. Branded Sweet Treats grew year on year, with Mr Kipling up 7.5 percent, benefiting from our range of low sugar options and the ongoing success of the premium Signature range. I’m very pleased by the progress of our healthier options ranges, such as Sharwood’s low fat cooking sauces, which have grown at over twice the rate of our branded portfolio, as consumers continue with their recently adopted good healthier eating habits. International also performed particularly well, building on the very strong gains from last year, growing by +17 percent on a two year basis, as we continue to build sustainable, profitable overseas businesses.»

«With our continued strong trading momentum and the lower coupon of the new fixed rate notes at 3.5 percent, we now expect to deliver adjusted Profit Before Tax at the top end of our FY21/22 expectations.»