Premier Foods: reports bigger slice of sales

London / UK. (pf) Premier Foods PLC reported a nine percent increase in annual group sales and a ten percent second half sales improvement in a trading update. Trading profits are anticipated at between 315 million GBP and 320 million GBP and adjusted pre-tax profits between 185 million GBP and 190 million GBP. Chief executive Robert Schofield said the group is «well positioned to meet the challenges of the current economic downturn».

Hovis sales in 2008 are expected to have increased by approximately 13 percent compared to 2007. «We are delighted by the response to the relaunch of Hovis which has benefited from an award winning advertising campaign, quality improvements, new packaging and range extensions», Schofield said. Hovis´ market share is now in year on year growth having reached a value share of 24,3 percent for the four weeks to 27 December 2008, an increase of two percentage points since August 2008, further cementing its number two position in the market. Whilst Trading profit for the division for 2008 will be lower than in 2007 due to the company´s investment behind the relaunch of Hovis and the lower volumes seen in the first half of 2008, Premier Foods believes it has built a platform for sustainable future profit development (press release).