FDBusiness.com

Interim Sales and Profits Fall at Premier Foods

 Breaking News
  • Bord Bia’s 2018 Brexit Barometer Results The Irish Government has launched the Bord Bia 2018 Brexit Barometer, a comprehensive survey of 117 Irish food, drink and horticulture companies, representing 48% of the sector’s exporters to the United Kingdom. Over 100 senior industry representatives attended the launch in Bord Bia to hear the report findings. The purpose of the Brexit Barometer is to assess [...]...
  • Cargill Invests in Mouscron Facility to Meet Demand For Belgian Chocolate With the rapid rise in consumer demand for premium, high quality Belgian chocolate, Cargill has invested in a new liquid chocolate production line in its Mouscron production facility in Belgium. This investment increases the company’s capacity to produce milk and dark chocolate and creates up to 10 new local jobs. Cargill’s cocoa and chocolate business will [...]...
  • Heineken Makes Biggest Ever Investment in UK Pub Estate Heineken UK is making its largest ever annual investment in Star Pubs & Bars, investing £44 million during 2018. This investment is more than double the figure invested last year (£20 million) and brings Heineken’s total expenditure on pubs to almost £140 millioin over the past five years.Around a quarter of Star’s 2,900 pubs will [...]...
  • New Starter Culture Secures Mild and Creamy Soft Cheeses Chr. Hansen’s latest launch helps cheesemakers to produce soft cheese that maintains the desired taste and texture. The extension to the DVS® SSC series is the latest addition to Chr. Hansen’s soft cheese starter culture range. The product series now consists of four cultures and is designed to create soft cheese with a mild flavor and [...]...
  • TOP Develops Technology Platform For Dairy Farmers TOP from Wageningen in the Netherlands is developing a technology platform that enables dairy farmers to sell bottled milk from individual cows. With the technology it will be possible to pasteurize and package bottles of milk from individual cows. Dutch consumers will soon be able to buy milk from their very own favourite cow. In the [...]...

Interim Sales and Profits Fall at Premier Foods

Interim Sales and Profits Fall at Premier Foods
November 16
11:43 2016

Premier Foods, the UK convenience food manufacturer, has reported a 1.8% fall in group sales to £348.0 million for the 26 weeks ended 1 October 2016 – compared to the corresponding period in 2015 – with underlying trading profit down by £2.0 million to £48.0 million, partly due to increased marketing investment.

Total sales in the Grocery business were £250.3 million in the first half of the year – 4.0% lower than the prior year as growth in non-branded sales was offset by a decline in branded sales to £212.8 million. A good sales performance in the first quarter of +1.9% was offset by lower sales in the second quarter. Divisional contribution was £4.0 million lower in the period at £56.2 million due to lower Q2 volumes and higher consumer marketing.

Total sales in the Sweet Treats business increased by 4.1% in the first half of the year and by 6.4% in the second quarter; this being the sixth successive quarter of sales growth. Branded sales grew by 2.7% while non-branded sales were strongly ahead of the prior year; up 12.5%. Divisional contribution was £6.6 million in the half, £0.8 million lower than the prior year.

Sales in the International business increased by over 9% in the first half of the year driven by strong performances in Australia and the USA. On a constant currency basis, sales were up approximately 4% reflecting weaker sales in Ireland.

Gavin Darby, chief executive of Premier Foods.

Gavin Darby, chief executive of Premier Foods.

Premier Foods expects to spend approximately £36 million on consumer marketing investment in this financial year. This is in line with the prior year and is the equal highest amount of annual marketing spend the group has ever made. During the course of the 2016/17 financial year seven brands will benefit from TV advertising.

“Following a good first quarter where we saw a number of our brands in growth, the second quarter was much weaker in our Grocery business due to warmer weather which resulted in lower sales in the first half overall. However, our Sweet Treats and International businesses continued to demonstrate their strong momentum, delivering against our strategic priorities and growing over 4% and 9% respectively,” says Gavin Darby, chief executive of Premier Foods.

He continues: “We remain very confident in our strategic progress, our customer relationships are strong and we have an extensive new product innovation programme planned for the balance of the year. We are pleased with the progress that we have made on the 2016 triennial pension scheme valuations, which has resulted in the NPV of the pension deficit recovery plan expected to reduce by about £100 million. We expect group sales to grow between 2-4% in the second half of the year and our profit and net debt expectations for the full year remain unchanged.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 25, 2018Packaged., The 7th Global Summit
  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements