Premier Foods: Stabilisation and growth strategies on track

London / UK. (pf) Premier Foods PLC announces its half year results for the six months to 30 June 2012 – confirming the Group´s stabilisation plans and growth strategies remain on track. Summary:

  • Underlying sales, excluding Milling, up 1,1 percent
  • Power Brand sales up 2,0 percent, Grocery Power Brand sales up 4,9 percent
  • Underlying Trading profit up 3,2 percent
  • Marketing investment increased 40 percent
  • Power Brand portfolio consistently gaining market share
  • Cost reduction programme to deliver 40 million GBP savings by year end, ahead of 2013 plan
  • Disposal programme on schedule
  • Full year outlook unchanged

    Commenting on the Half Year, Michael Clarke, Chief Executive Officer, said: «I am pleased with the progress we are making to stabilise the business, re-focus the portfolio and invest in our future growth. Our strategy of focusing on our Power Brands is starting to gain traction. Power Brand sales were up two percent and sales of Grocery Power Brands increased by a healthy 4,9 percent, reflecting consistent improvement in market shares. Trading profit increased 3,2 percent, in line with our expectations. Plans to simplify the business and drive further efficiency and effectiveness are proceeding ahead of plan and we will now deliver the previously announced 40 million GBP savings by the end of 2012. As we continue our divestment programme, we plan to take further costs out of the business. We remain cautious given the current economic and trading environment and our full year expectations remain unchanged».

    in million GBP H1/2012 H1/2011 Change
    Underlying business
    Sales exclusive Milling 757,1 749,1 1,1 percent
    Power Brand sales 418,9 410,5 2,0 percent
    Trading profit 53,2 51,5 3,2 percent
    Ongoing business
    Sales 852,3 872,6 (2,3 percent)
    Trading profit 72,2 70,1 3,0 percent
    Reported results
    Sales 852,8 1’004,7 (15,1 percent)*
    Operating profit 33,6 56,7 (40,7 percent)*
    Adjusted earnings per share (in GBPence) 9,5 7,0 35,7 percent
    (*) Includes disposed of Canned grocery and Irish Brands businesses in 2011 and restructuring costs associated with these divestitures in 2012