FDBusiness.com

Premier Foods in the Red But Debt Level Reduced

 Breaking News
  • Ardgowan Unveils Plans For Inverclyde Distillery Ardgowan Distillery has revealed ambitious designs for its new £12 million distillery which is being built on the Ardgowan Estate near Inverkip, 30 miles west of Glasgow. The plans showcase the flagship building which has just secured revised planning consent from Inverclyde Council. The striking new design, by Michael Laird Architects, brings a number of improvements [...]...
  • HKScan Launches Exports of Finnish Poultry Products to Sweden HKScan, the Nordic food and meat group, has started exporting Finnish poultry products to Sweden. They will initially be sold through the largest retailer ICA’s outlets under the Karinäs®(Kariniemen®) brand. The launch gives Swedish consumers access to a new innovation: high welfare farm-born poultry that is hatched on the farm where it is raised. This new concept is [...]...
  • Almonds Retain Top Spot For Nut Introductions in Europe According to Innova Market Research’s latest Global New Product Introductions Report, almonds retain the number one spot for nut introductions in Europe. With a 47% share of global almond product introductions, the region leads globally for the eleventh year running. Europe as a whole saw a total of 5,017 new introductions with almonds – a [...]...
  • Arla Foods UK Launches New Standards Model to Bring Sustainable Change to Dairy Farming With ongoing volatility in the global milk markets, increasing consumer misunderstanding of the sector, polarised levels of support for UK dairy farmers and a new post-Brexit Agriculture Bill the challenges for dairy farmers are mounting. Farmer-owned co-operative Arla Foods has launched ‘Arla UK 360’ – a new standard in UK dairy farming. The Arla UK 360 [...]...
  • €172 Million to Promote EU Agri-food Products In and Outside the EU The European Commission will provide funding of €172.5 million from the EU agricultural budget to promote EU agri-food products in Europe and across the world. 79 campaigns, covering a wide range of products such as dairy products, olives and olive oil, and fruit and vegetables, will be rolled out over the next three years. Agriculture and [...]...

Premier Foods in the Red But Debt Level Reduced

Premier Foods in the Red But Debt Level Reduced
February 16
14:44 2011

Premier Foods, the UK’s largest food producer, has reported a pre-tax operating loss of £98m, against a profit of £42m in 2009, on a continuing basis for 2010 after a £125m goodwill impairment at its Brookes Avana own label bakery and prepared food business. Group turnover dipped by 3.5% to £ 2.57b due to lower non branded sales. Although volume was up 3.1%, the value of branded sales was relatively flat at £1.67b, down 0.3% on 2009.

Group trading profit edged up 0.6% to £311m, as both the grocery division and the Hovis business recorded improved trading profit but trading profit fell by £15m at Brookes Avana. Indeed, the most dramatic effect of last year’s pricing and commodity inflation was reflected in plunge in profitability at Brookes Avana. Premier is currently talking constructively with UK retailer Marks & Spencer to agree new product ranges and revised pricing and supply arrangements which will be able to return the business to profitability in 2011.

The debt mountain was reduced by £103m to £1.26b during the year but the proceeds from the recently agreed disposals of Premier’s canning and meat-free businesses will further cut pro forma net debt below £900m.

Outlook

Robert Schofield, chief executive of Premier Foods.

Promotional activity in its retail markets increased significantly in 2010 but Premier does not expect it to continue to escalate at the same rate in 2011. Commodity inflation has been running at mid single digit percentages, requiring Premier to increase prices for its products. At this level, the UK food group believes that inflation is manageable.

Premier’s focus in 2011 will be to continue to take branded market volume share, while growing its percentage of grocery branded sales from new and improved products as its innovation pipeline matures. It will also continue to drive for efficiencies; and to generate at least £80m of recurring cash flow.

“Our business has proved resilient, with branded volume market share growth, increased margin from procurement and manufacturing efficiency and lower operating expenses. There is more to do in each of these areas and we have aligned the organisational structure behind the strategy of growing our brands. We would expect our focus to enable the group to show progress from our new base after the disposals without a further deterioration in the consumer environment,” comments Robert Schofield, chief executive of Premier Foods.

About Author

colin

colin

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 21, 2018Int'l Food Products Exhibition (Sial)
  • October 25, 2018Italian Espresso Coffee Show (TriestEspresso Expo)
  • October 25, 2018Finnish Food Fair
  • October 31, 2018Int'l exhibition for food products and equipment (Indagra Food)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements