Strong performances in emerging markets have helped Diageo to achieve organic growth of 6% in net sales to £10.76 billion and 9% in operating profit before exceptional items to £3.20 billion for the year ended 30 June 2012, with the margin improving by 60 basis points. Free cash flow was £1.6 billion.

During the year, Diageo increased marketing investment by 8%, up 30 basis points to 15.8% of net sales, focusing on strategic brands and the fastest growing markets.

Emerging markets, which now account for almost 40% of Diageo’s business, grew net sales  by15% and operating profit by 23%. Acquisitions in faster growing markets, primarily Mey İçki inTurkey, added £320 million of net sales and £82 million of operating profit after transaction and integration costs.

During the year Diageo increased its ownership stake in Shuijingfang and Halico and announced an agreement to acquire the Ypioca brand inBrazil. The drinks group is also planning to invest a further £1 billion to expand its Scotch whisky production capacity

“Diageo is a strong business, getting stronger,” says Paul Walsh, chief executive of Diageo. “We have increased our presence in the faster growing markets of the world, through both acquisitions and strong organic growth. We have enhanced our leading brand positions globally, through effective marketing and industry leading innovation and we have strengthened our routes to market. 6% organic top line growth, 9% operating profit growth and 60 basis points of margin expansion is a strong performance and demonstrates our commitment to delivering efficient growth.”

He adds “In F12, we have continued to invest to ensure this business is well positioned for the future. Our confidence in the achievement of our medium term guidance is underscored by the 8% recommended increase in our final dividend.”

Heineken has reported a 4.5% organic increase in revenue to Eur8.8 billion for the first half of 2012, driven by higher total consolidated volumes up 1.6% and revenue per hectolitre growth of 2.9%. Group beer volume rose 3.3% with increases in four out of the global brewer’s five regions. Reported net profit increased 30% to Eur783 million but included a post-tax book gain of Eur131 million for the sale of a minority stake in a brewery in the Dominican Republic. Net profit (beia) declined 4% on an organic basis.

Heineken’s ongoing Total Cost Management (TCM2) programme delivered pre-tax savings of Eur85 million in the first half of 2012. Despite this benefit, profitability in the first half of the year was impacted by difficult trading conditions across Europe as well as higher input costs and planned capability investments.

Jean-Francois van Boxmeer, chairman and chief executive of Heineken, comments: “Our focus on delivering top-line growth continues to be successful with revenue increases across all regions and market share gains in several of our key markets. The Heineken brand again performed strongly in the international premium segment with organic volume growth of 6%. “Our Africa & the Middle East, Asia Pacific and Americas regions all delivered an excellent top- and bottom-line performance.”

He continues: “Although faced with a challenging economic environment and unfavourable weather, revenue in Western Europe increased slightly in the first half of the year, whereas the Central & Eastern Europe region reported solid organic top-line growth.”

Heineken expects overall group revenues for the full year to benefit from continued positive momentum in higher growth economies across the Asia Pacific, Africa & the Middle East and the Americas regions. However, volume in Western Europe is expected to remain subdued in the second half of 2012 owing to the challenging economic conditions. Full year net profit (beia) is expected to be broadly in line with last year, on an organic basis.

Helped by market share gains in all regions, Carlsberg has reported a 47% rise in net profit to DKr3.28 billion in the first half of 2012 on organic net revenue up by 1% to DKr32.46 billion (Eur4.35 billion). However, operating profit at DKr4.05 billion was down from the DKr4.70 billion in the first half of 2011, due to decline in Northern & Western Europe and Eastern Europe offset by growth in Asia.

During the first half, the Northern & Western Europe beer market, excluding Poland, declined by an estimated 3-4% while the Russian beer market was up by an estimated 2%.

“Carlsberg achieved positive market share growth in all three regions which shows that the recent years’ significant efforts behind our international premium brands, local power brands, and within sales execution are paying off,” comment Jorgen Buhl Rasmussen, chief executive of Carlsberg. “It is particularly satisfactory to see a further improvement in our Russian market share which is a clear sign that our efforts initiated during last year are beginning to bear fruit. Excellent execution of EURO 2012 delivered very strong visibility of the Carlsberg brand. Sales and marketing investments were more skewed towards the first half of this year which, combined with the very bad weather in Northern & Western Europe, impacted profits for the first six months.”

Carlsberg expects full year operating profit before special items to be at the level of 2011 with slightly growing adjusted net profit.

Kerry Group has reported a solid business performance for the half year ended 30 June 2012 and increased guidance for full year. The global ingredients, flavours and consumer foods group increased revenue by 10% (2.5% on a like-for-like basis) to Eur2.9 billion and trading profit by 12.6% to Eur241 million. Notwithstanding the increased level of expenditure relating to the group’s ongoing 1 Kerry Business Transformation and global ‘Kerryconnect’ IT project, the group trading profit margin increased by 20 basis points to 8.3%.

Sales at Kerry’s Ingredients & Flavours business rose by 14% to Eur2.07 billion with 3.7% like-for-like growth. Trading profit grew by 10.9% like-for-like to Eur213 million with the division’s trading margin improving by 30 basis points to 10.3%.

Despite the impact of the economic situation in Ireland and the UK on consumer trends and spend, Kerry Foods performed satisfactorily in the first half of 2012 achieving continued growth in the UK branded and private label sectors and a stabilised market positioning in Ireland. Divisional revenue increased by 1.8% on a reported basis to Eur881 million, reflecting 0.1% like-for-like growth. Consumer Food trading profit increased by 0.6% like-for-like to Eur64 million, maintaining the divisional trading margin at 7.3%.

Stan McCarthy, chief executive of Kerry Group, comments: “Kerry achieved a strong financial and operating performance in the first half of 2012 which augurs well for the full year. We have a strong innovation pipeline and continue to make good progress in implementation of our 1 Kerry Business Transformation programme. The group is confident of delivering our full year growth objectives and has revised adjusted earnings per share guidance upwards. We now expect to achieve eight to twelve per cent growth in adjusted earnings per share in 2012.”

Reflecting growth across all its global regions, Nestle has reported a 7.5% increase in group sales to SFr44.1 billion (Eur36.7 billion) with net profit up 8.9% to SFr4.7 billion for the first half of 2012. Organic sales growth was 6.6%, composed of real internal growth of 2.9% and pricing of 3.7%. Acquisitions, net of divestitures, contributed 2.7%.

The Swiss food and beverage group managed to offset rising input costs through savings from its Nestle Continuous Excellence programme as well as timely pricing increases. Group trading operating profit rose by 6.3% to SFr6.6 billion. The margin was 15.0%, in line with expectation that the margin performance would be second-half weighted. Nestle is continuing to invest in R&D to drive innovation, maintaining the level at 1.6% of sales.

Growth was achieved in all regions of the world. The Americas exhibited organic growth of 6.4%, Europe 2.6% and Asia, Oceania and Africa 12.6%. Nestle’s business grew 12.9% in emerging markets and 2.6% in developed markets.

Paul Bulcke (pictured), chief executive of Nestle, comments: “We continue to drive innovation globally, ranging from popularly positioned products to super premium offerings. We are continually opening new routes-to-market to reach emerging consumers, and using new media to increase both our direct engagement with consumers and our return on brand investment. This approach has delivered profitable growth in both emerging and developed markets. Our first-half top line growth and our trading operating profit margin, together with our focus on capital efficiency, allow us to reconfirm our full-year outlook.”

Nestle’s full-year outlook is for organic growth of 5% to 6%, improved margin and underlying earnings per share in constant currencies.

UK food processor Premier Foods has reported that its underlying business sales increased by 1.1% to £757.1 million in the six months to 30 June 2012, an increase of £8.0 million compared to the prior year, and that underlying business trading profit increased by 3.2% to £53.2 million. As Premier Foods is undergoing a period of substantial restructuring and major disposal of assets to reduce debt, the group is focusing on its underlying business performance.

Underlying business excludes the results of completed business disposals as at 30 June 2012, Milling (sales only), and specific material items in 2011 and 2012 including pension credits, commercial adjustments and a non-core, discrete contract loss.

Sales at the Grocery division increased by 2.5% to £504.0 million but fell by 1.7% to £253.1 million at the Bread division.

Grocery divisional contribution to trading profit decreased by £4.4 million to £95.5 million in the first half of the year, owing to an increase in consumer marketing expenditure of £8.0 milion and higher promotional investment. The Bread division contribution declined £8.2 million to £22.5 million due to lower market volumes, increased promotional activity in a competitive environment and higher net costs to serve in the supply chain. The divisional contribution, the measure which the group is now using for reporting divisional performance, strips out all costs previously identified as Group & Corporate costs and other selling, general and administrative costs. The Grocery and Bread divisiional performances were offset by strong progress in the SG&A cost base, as costs reduced by £14.3 million.

“I’m 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,” comments Michael Clarke, chief executive of Premier Foods. “Power Brand sales were up 2% and sales of Grocery Power Brands increased by a healthy 4.9%, reflecting consistent improvement in market shares. Trading profit increased 3.2%, in line with our expectations.”

Plans to simplify the business and drive further efficiency and effectiveness are proceeding ahead of plan and Premier Foods will now deliver the previously announced £40 million savings by the end of 2012 – a year ahead of schedule. Michael Clarke adds: “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.”

Parmalat has reported a 9.4% rise in EBITDA to Eur183.3 million on revenue up 6.1% to Eur2.28 billion for the first half of 2012, aided by increases in sales prices implemented last year in the Italy-based international dairy group’s main countries and higher sales volumes in Australia, Russia and Africa.

In Italy EBITDA grew by 16.0% to Eur45.9 million on flat sales of Eur482.4 million compared with the same period last year. In the Other Countries in Europe sales region, which includes the subsidiaries in Russia, Portugal and Romania, net revenues increased by 7.7% to Eur82.8 million and EBITDA rose from Eur3.3 million to Eur6.5 million chiefly as a result of a strong performance by the Russian subsidiary, which benefited from an incisive sales policy and the lower prices for raw milk.

Group EBIT at Eur96.2 million was down slightly from the Eur96.6 million reported at June 30, 2011, as operational improvements were offset by lower non-recurring activities.

Zetar, the UK-based confectionery and snack foods group, has reported a 17.5% drop in adjusted profit before tax to £5.5 million for the year ended 30 April 2012. Revenue dropped 5.0% to £128 million due to Zetar’s strategic exit from low margin commodity snack products and reduction in Easter confectionery sales. Net borrowings were reduced from £14.9 million to £10.8 million as the company remains focused on driving down levels of debt.

Ian Blackburn, chief executive of Zetar, comments: “Last year’s financial performance was disappointing primarily due to the late reduction in Easter 2012 sales, as our customers became increasingly cautious as the economic crisis in Europe unfolded. However, we continued to make good progress towards our main strategic objectives to increase the proportion of everyday and branded sales. Our portfolio of brands has been extended by the addition of the iconic brands Guinness and Tango, and we anticipate signing further well-known brands in FY2013.”

He continues: “We are optimistic about the new financial year following recent significant new everyday product wins and although consumer markets remain challenging, we are pleased that the year has begun in line with our expectations with underlying sales growth of 7%, to which may be added one-off sales in respect of Olympic gifting products of approximately £1.5 million in the first eleven weeks of the year. Last year’s cost initiatives are reflected in improved margins in the period. Accordingly the board is confident that the group’s results for the current financial year will be back on plan.”

Zetar has an ambitious business plan for the next three years in terms of revenue and margin growth targets. This will involves bolstering the company’s brand model with additional licensed brands for both divisions and capitalising on opportunities to drive private label sales as UK retailers seek to complement their value-for-money ranges with more premium added-value products. Zetar has also identified opportunities to expand its export sales, particularly into mainland Europe via the newly-formed subsidiary Zetar France.

The board’s confidence in the group’s future prospects and financial strength is reflected in its decision to increase the dividend by 33%.

With all divisions recording sales growth, Real Good Food Company has reported a 62% increase in EBITDA to £9.1 million on turnover up 24.4% to £249.0 million in 12 months to December 2011. The performance was driven by a focus on brand development and by driving sales growth.

A significant proportion of the EBITDA growth came from sugar distributor Napier Brown as it responded successfully to the market changes following EU sugar regime reform but the overall profit performance was supported also by strong results from Renshaw and Garrett Ingredients. Renshaw supplies a range of food ingredients primarily to the bakery sector, while Garrett is a major player in the UK ingredients and bakery market supplying a full range of dairy and bakery ingredients, ice-cream mixes, sugar and milk. The fourth division, Haydens Bakery, produces chilled and ambient premium patisserie and desserts and has just commenced a three years bakery modernisation programme.

Pieter Totte, executive chairman of Real Good Food Company, comments: “In 2011 we delivered on our commitment to return to growth in sales and profitability. We are now embarking on an exciting period designed to transform the scale of the group over the next three years. This strategy is rooted in robust plans produced by each individual business and we have restructured the group to support these.” Real Good Food Company is aiming to double sales over the next three years.

In April 2011 the board announced it was moving its year end from 31 December to 31 March to better align its financial reporting with its trading seasonality. The October to December period is especially busy generating most of the year’s operating profits (about 58% of EBITDA was generated in the 2011 calendar year). The January-March period is the group’s ‘quietest’ trading period with EBITDA typically around the break even level driven by the combination of the lowest sales levels in the year in this quarter with a relatively flat overhead base through the year.

This is evident in the trading comparatives with sales of £305.5 million for the 15 months to 31 March 2012, £56.5 million higher than the 12 months ended 31 December 2011 (£249.0 million) but profitability flat with EBITDA at £9.2 million and £9.1 million respectively.

UK regional brewer and pub group Greene King has delivering another set of record results. Revenue increased by 9.4% to reach a record £1.14 billion for the 52 weeks to April 29 2012 and operating profit before exceptionals rose by 6.4% to a record £236.2 million. Profit before tax and exceptionals advanced by 8.6% to £152.0 million – another record.

Greene King’s Brewing & Brands division increased total volume, including third party drink sales, by 8.1% leading to revenue growth of 5.0% to £173.8 million. Operating profit slipped 0.3% to £33.0 million. Full year investment in Greene King’s core ale brands increased by 7.2%, leading to another year of strong market out performance for Brewing & Brands. Most significantly, the group re-launched Greene King IPA, the UK’s leading cask ale brand, including its first national TV advertising for five years. Greene King also increased its investment in innovation with the launch of a number of new brands and brand extensions including Old Golden Hen and Belhaven Black.

Greene King Retail, the group’s biggest and fastest growing business, generated 71% of total revenue and 63% of group profit in the year. At the year-end, there were 954 pubs, restaurants and hotels across the UK, split between Destination Pubs for its branded, food-led destinational sites and Local Pubs, for unbranded, more wet-led community sites. All sites are either branded or clearly segmented by customer occasion.

Rooney Anand, chief executive of Greene King, comments: “Consumer confidence remains weak and volatile. This is driving the UK consumer to seek out ‘everyday treats’, rather than ‘big ticket’ items. With no economic recovery on the horizon, we anticipate another tough 12 months ahead of us, although we are confident of benefitting from the exciting summer in Britain, including the Olympics in August, notwithstanding the unpredictable weather.”

He continues: “This predisposition to ‘everyday treats’ is helping the industry to deliver steady growth. In 2011, the £22 billion drinking out market grew 1.7% in value terms and it is expected to grow by 2.5% per annum between 2011 and 2015. The £42 billion eating out market was up 2.4% in value terms in 2011 and is expected to grow by 3.4% per annum between 2011 and 2015. And the £43 billion staying out market was up 2.9% in 2011 and is expected to grow by 0.1% in 2012.”

Rising raw materials costs and a decline in the UK bakery market have impacted on the financial performance of Warburtons. Pre-tax profits at the UK’s largest independent baker fell by more than a third from £26 million to £16.3 million for the year ended September 24, 2011 as turnover edged ahead from £492 million to £495 million.

According to Warburtons, trading conditions worsened during the year and the bakery market declined in both value and volume. The company’s main focus remains on growing share of the bakery business in Great Britain, which it realises can only be achieved by developing new product ranges alongside its current market leading lines.

Warburtons introduced a number of new products during its last financial year, including wraps and flatbreads, and also started exporting to Czech Republic, Slovakia, Hungary and Poland for the first time. The Bolton-based baker, which produces more than two million loaves, rolls and crumpets every day, is currently considering export sales opportunities in France and Spain.

UK dairy co-operative First Milk has delivered a robust performance and solid financial results for the year to 31 March 2012. Pre-tax profits increased from £7.2 million in 2011 to £13.3 million but £9.6 million of this figure relates to the profit made on the sale of First Milk’s shareholding in Robert Wiseman Dairies, which has been acquired by Mullar Dairy (UK).

Group turnover increased by 1% £579 million. During the year First Milk increased the milk prices paid to its farmers – farmers in the liquid pool saw their price increased by 2.9ppl, whilst those in the cheese and balancing pools saw their prices increase by 2.98ppl.

First Milk is committed to rewarding its members for the money that they have invested in the business. In the last 12 months the dairy co-operative has made two payments, in July 2011 and January 2012, which together represent a return of 6% on members’ capital for the year.

Net debt rose during the year by £3 million to £47 million, mainly as a result of increased stocks required to facilitate the growth in the sales in the company’s Lake District Cheese brand, investments at manufacturing sites and the acquisition of Kingdom Cheese and Kingdom Dairies, but reduced in February 2012 following the sale of the Wiseman stake.

£6.3 million was invested in capital projects during 2011/12 and First Milk is continuing to invest at all its sites to drive efficiencies. During the financial year First Milk was also able to recruit 195 million litres of new milk.

“We have set out a clear path to develop First Milk into an added value food business and 2011/12 was notable for the opportunities we realised, as well as the delivery of a robust financial performance in tough market conditions,” comments Bill Mustoe, chairman of First Milk. “Over the last 12 months we have bought two businesses – a soft and grated cheese operation in Fife and a sports nutrition business in Manchester. These purchases have not only enabled us to diversify our product and customer base, but most importantly they provide a broader platform to drive cash for our farmer shareholders.

SABMiller, the world’s second largest brewer, has reported an 11% increase in revenue to $31.4 billion and a 12% rise in EBITA to $5.6 billion, with underlying lager volumes up 3% to 229 million hectolitres, reflecting particularly strong growth in Latin America and Africa.

EBITA increased by 8% on an organic, constant currency basis, with all beverage divisions except for Europe contributing to growth. EBITA margin was 10 bps ahead of the prior year at 17.9%. Europe EBITA declined 9% due to lower volumes, adverse mix and increased raw material costs.

In December 2011, SABMiller completed the acquisition of Foster’s in Australia. SABMiller has also entered a strategic alliance with Castel in Africa.

In March 2012, SABMiller completed a strategic alliance with Anadolu Group and Anadolu Efes, exchanging its Russia and Ukraine beer businesses for a 24% equity stake in the enlarged Anadolu Efes group. Anadolu Efes is now the vehicle for both groups’ investments in Turkey, Russia, the CIS, Central Asia and the Middle East.

Looking ahead, Graham Mackay, chief executive of SABMiller, comments: “Trading conditions are expected to be broadly unchanged with further growth in our developing markets but no more than modest improvements in consumer spending in some more developed economies. We will continue to develop and differentiate our brand portfolios, taking opportunities to improve sales mix and raise prices selectively. Unit input costs are expected to rise in mid-single digits in constant currency terms.”

Although revenue increased, due to strong growth in its Foods business, and group operating profits levels were maintained, UK dairy group Dairy Crest has reported a pre-tax loss of £10.1 million for the year ended 31 March 2012. Dairy Crest’s revenue rose by 2% to £1.63 billion during the year, with its Foods business growing sales by 10% supported by continued progress from its five key brands, which increased sales by 11%, boosted by a strong performance by Cathedral City cheese. However, revenue at the Dairies business fell by 2%.

Despite the challenging trading conditions, Dairy Crest managed to maintain adjusted profit before tax at £87.4 million but exceptional non-cash impairment charges in Dairies of £81.7 million resulted in a reported loss.

Mark Allen, chief executive of Dairy Crest, comments: “Dairy Crest’s results for the year demonstrate the continued benefit of being a broadly based business. Double digit growth in our branded Spreads and Cheese businesses has offset unsatisfactory results in Dairies. We have maintained adjusted group profits despite facing inflationary cost pressures of around £80 million this year by making annualised cost savings of around £22 million and achieving selling price increases. This has been made possible by a programme of consistent investment in developing our key brands and building a modern, efficient supply chain.”

Since the year end, Dairy Crest has announced a series of measures to restore its Dairies business to a satisfactory level of profitability in the medium term. In March 2012, Dairy Crest commenced a strategic review of its French spreads business, St Hubert, which is progressing.

Mark Allen adds: “In the current financial year, we are seeing continued strong momentum in our Foods businesses and we expect Dairies to benefit from the decisive action we are taking and our continued discipline on costs.”

Britvic, the UK-based soft drinks group, has increased revenue by 1.7% to £641.1 million for the 28 weeks ended 15 April 2012 but EBITA declined 6.9% to £41.9 million and margins slipped 60bps to 6.5% due to the impact of higher raw material costs and continuing problems at its Irish business. Profit before tax sank 10.5% to £24.8 million.

During the first half Britvic increased group volumes by 1.9% to 1.1 billion litres and achieved revenue growth in its GB, France and International business units. However, the business in Ireland continued to have a negative impact on the group’s overall performance. Indeed, Britvic faces a challenging trading environment characterised by fragile consumer confidence in its three core markets of  GB, France and Ireland.

GB revenue rose by 2.4% to £430.9 million with comparable volume growth of 2.9%. Britvic France revenue advanced 6.4% to £123.1 million, led by strong price growth of 11.5%, as volumes were down 4.6% in the first half of the year. The International business unit delivered revenue growth of 13% to £14.4 million, driven by US Fruit Shoot and expansion into new states, including Texas.

Although volumes edged up 0.5%, revenue fell by 10% to £ 72.7 million at Britvic Ireland. The Irish soft drinks market remains challenging and shows no sign of recovery in the near term, according to Britvic. Britvic is taking further action on costs to mitigate the declining top line and to create a long term, sustainable and profitable business.

“Despite the challenging economic environment, Britvic has delivered a robust performance and made encouraging progress on key initiatives,” says Paul Moody, chief executive of Britvic. “Revenues increased for the group, GB, International and France, delivering improved cash flow, enabling a reduction in debt and a proposed further increase in the interim dividend.”

Looking ahead, he comments: “Although the GB soft drinks market in April and early May has been adversely impacted by the poor weather, Britvic has continued to grow market share and with the key summer months ahead, we currently, remain comfortable with delivering the full year performance in line with our expectations.”

Buoyed by the acquisition of Uniq, UK and Irish convenience foods group Greencore has increased revenue by 49.9% to £567.7 million and group operating profit by 36.7% to £31.7 million for the 26 weeks ended 30 March 2012. Revenue from continuing activity rose by 9.3% with the Convenience Foods division ahead by 9.7%. However, group operating margin slipped by 50bps to 5.6%, resulting from the incorporation of Uniq.

“Our business has performed strongly in the first half of 2012. The acquisition of  Uniq last year has reshaped our group and we are on track to deliver all of the targeted integration benefits,” comments Patrick Coveney, chief executive of Greencore.

Greencore has also made further progress in the US with the acquisition of MarketFare Foods. “This acquisition represents the next step in building a business of real scale in theUSand strengthens our position in the food to go/convenience store channel,” he adds.

Patrick Coveney does not expect to see any material improvement in the trading environment in the UK in the second half and has yet to see a material easing in inflationary pressure. “Notwithstanding these pressures, we continue to target good underlying revenue growth and strong growth in adjusted earnings per share,” he says

UK food group Cranswick has recorded its highest ever sales and second best trading profit in its history for the year ended 31 March 2012, despite strong raw material price increases early in the financial year and a continued challenging environment for the consumer.

Underlying sales rose 10% in the year to £821 million, reflecting growth across most product sectors but especially in sales of bacon, fresh pork and sausages. Operating profit dropped 5% to £46.7 million but pre-tax profit rose 3% to £ 48.4 million after a non-recurring gain of £2.6 million.

Cash flow in the period remained robust notwithstanding the investment in the company’s asset base of £20 million to expand production capacity, improve efficiency and broaden the product range. Cranswick has well invested facilities which, across the sectors in which it operates, are amongst the most efficient production sites in the UK.

Bernard Hoggarth, chief executive of Cranswick, will be standing down from his position at the forthcoming annual general meeting, to be held on 1 August 2012, and will take up the part-time role of commercial director. Adam Couch, currently chief operating offices, will then succeed him as chief executive. Adam Couch has been with Cranswick for over 20 years.

UK dairy co-operative Milk Link has produced a solid financial and trading performance over the last year. Group turnover increased by 7.1% to £628 million and EBITDA rose 15.4% to £33.7 million for the year ended 31st March 2012.

Milk Link lifted comparable profit before tax up by 42.7% to £14.3 million and the Member milk price increased by 2.5ppl during the year bringing the standard litre price to 28.5ppl. This meant that in comparison to the previous year Milk Link generated and paid out an additional £33.7 million to its Members for their milk.

Group borrowings rose by £2.1 million to £82 million. However, at the same time capital expenditure increased to £10.0 million compared to £5.5 million in the prior year.

“Despite an extremely difficult trading environment the group’s financial performance again strengthened,” says Neil Kennedy, chief executive of Milk Link. “During the year we benefited from strong commodity prices for our skimmed milk powder, cream, curd and whey products; from an increase in milk production from our Members and long term ‘direct’ suppliers; from cost savings resulting from the implementation of rigorous efficiency and productivity programmes across all areas of the business and from our continuing emphasis on cash, stock and debt management. Nevertheless, the results also reflect that Milk Link’s trading performance in our main retail and foodservice markets held up well despite highly challenging conditions. Indeed, sales both in terms of value and volume increased year on year in relation to our core Cheddar business, speciality cheese and flavoured milks.”

Milk Link has also been strengthening its processing business for the longer term by undertaking its largest capital investment programme to date. During the year, Milk Link completed two major investment programmes. The first was, as a result of a £12.5 million joint venture with Volac, the development of a state-of-the- art whey processing plant at Milk Link’s Taw Valley Creamery in Devon. A new £4 million production facility at the Trevarrian Creamery in North Cornwall was also completed by year end and to budget which has substantially increased the capacity of the creamery to meet a growing demand from major retailers and foodservice providers for its premium soft cheeses.

Growth across its three divisions has helped Marston’s, the UK regional brewer and pub operator, to increase group revenue by 7.6% to £342.1 million and underlying profit before tax by 14.7% to £33.5 million for the 26 weeks ended March 31st 2012. The improved performance was achieved in a challenging consumer environment, with above market rates of growth in the managed pubs, tenanted and franchised pubs, and brewing divisions.

Total brewing revenue increased by 6.6% to £53.6 million, reflecting strong performances in the off-trade and the independent free trade. Underlying operating profit increased by 2.7% to £7.5 million. Overall ale volumes were up 2% on last year, with bottled ale volumes up 10% and premium cask ale volumes up 2%. Marston’s has grown its share in both the premium cask ale and bottled ale categories. Approximately 75% of its own-brewed beers are now sold to third parties, up 1% on last year.

The managed pubs division increased like-for-like sales by 3.6% and operating profit by 6.8%. Operating profit at the tenanted and franchised pubs division rose by 3.1%.

“We have delivered a good performance in the first half year against a weak consumer backdrop, “comments Ralph Findlay, chief executive of Marston’s. “Our growth in revenue and earnings was underpinned by our strategic focus on delivering value, high service standards and a quality offering to our consumers and customers. Our confidence that we are well positioned for the future is reflected in our declared dividend increase.”

Marston’s has an estate of around 2,150 pubs situated nationally, comprising tenanted, leased, franchised and managed pubs. It is the UK’s leading brewer of premium cask and bottled ales, including Marston’s Pedigree and Hobgoblin. The beer portfolio also includes Banks’s, Jennings, Wychwood, Ringwood, Brakspear and Mansfield beers. Marston’s employs around 12,000 people throughout England and Wales.

C&C Group, the Irish and UK branded cider and beer business, has increased operating profit before exceptional items by 9% to Eur111.2 million for 2012, despite a 4.8% drop in net revenue to Eur480.8 million. Operating margins improved to 23.1% up 2.9 ppts reflecting the group’s strategic focus on driving brand value and greater operational efficiencies. This operating margin improvement was achieved without reducing the level of brand investment, with C&C Group continuing to invest approximately 13% of net revenue behind its key brands.

The Magners brand delivered positive volume and revenue growth in the competitive cider market in Great Britain and export volume growth of 28% principally driven by North American and Australian markets. The Tennent’s lager brand grew operating profits by 22.5% in the year; with Irish volumes rising by 64%.

Although group volumes declined 10.5%, the positive impact of brand mix reduced the net revenue decline to 4.8%, on a constant currency basis. Both the Republic of Ireland and GB markets experienced on-trade volume declines as consumer sentiment remained weak, while continued off-trade promotional activity and the challenge of new entrants resulted in another competitive year across the cider and beer categories.

Stephen Glancey, chief executive of C&C Group.

However, the group’s well invested brands and market positions enabled it to grow operating profits in the year supported by tight cost control and ongoing innovation. In addition, the group improved its operational efficiencies by securing new third party packaging contracts.

C&C Group has also continued to expand its international cider business during the year with the acquisition of the Hornsby’s brand in the United States and with the contracting of new distribution agreements in key markets for its core Magners brand.

“This has been a robust year for the group,” says Stephen Glancey, chief executive of C&C Group. “C&C is now a focused cider-led LAD business. While we remain cautious about the near term prospects of our core markets, the continuing global growth of the cider category, and C&C’s unique position within the sector, underscore our belief in the prospects of our business. C&C’s balance sheet strength and free cash flow characteristics will enable us to capitalise on organic and acquisition growth opportunities.”

Danish Crown, Europe’s largest meat processor, has reported a 1.2% decline in first half profit to DKr733 million (Eur98.6 million), chiefly due to increasing commodity prices. Consolidated revenue increased from DKr24.7 billion in the first half of the previous year, to DKr27.6 billion, reflecting organic growth as well as the acquisition of D&S Fleisch in Germany and Parkham Foods in the UK

”When commodity prices go up, it is our responsibility to ensure that this is reflected in the end prices, but there is a slight delay in the market which means that the price increases do not take place concurrently in the various parts of the value chain,” explains Preben Sunke, chief finance officer of Danish Crown.

The results also reflect increasing earnings by the Pork Division, but in a cautious market. ”We are noting a certain hesitation among consumers in several parts of the world, and although we are largely able to adapt to new trends, for example an increasing demand for inexpensive cuts or different product mixes, we are very much aware of this trend,” he says.

Danish Crown is Europe´s largest pig slaughtering business and the world’s largest exporter of pork. It is also Denmark´s largest cattle slaughterhouse company.

”Together with the uncertainty about future demand, turbulence in the financial markets is also a factor to be reckoned with when engaging in cross-border trading.” Preben Sunke adds: “Given the state of the market and the intensifying competition, the results are satisfactory and testament to Danish Crown’s stability and adaptability, also in response to sudden new developments.”

Carlsberg Group has reported a 2.8% rise in revenue to DKr12.9 billon (Eur1.7 billion) but operating profit declined by 43% to DKr574 million for its first quarter as volumes falls in Russia, due to destocking, offset solid growth in Northern & Western Europe and in Asia.

Northern & Western Europe and Asia achieved operating profit growth in spite of slightly higher cost of sales and higher sales and marketing investments due to different phasing than last year. Profits in Eastern Europe declined mainly due to lower volumes, slightly higher cost of sales and different phasing of sales and marketing investments compared to previous year.

The Carlsberg Group grew market shares in Northern & Western Europe and Asia during the quarter. InEastern Europe, its Russian market share improved slightly compared to Q4 2011 but declined as expected versus Q1 2011.

Jorgen Buhl Rasmussen, chief executive of Carlsberg Group, comments: “2012 is a year where focus, prioritisation and efficiency are key in everything we do. We are focusing our commercial activities behind our most important brands and events. We are putting significant resources behind the EURO 2012 sponsorship, which will be a key driver behind the support of the repositioning and the growth of the Carlsberg brand in 2012. In addition, the rejuvenation of the Tuborg brand will support the brand growth through improved performance in existing markets, as well as through introductions into new growth markets such as China.”

Glanbia, the international nutritional solutions and cheese group, has reported that international demand for dairy products has remained solid in the first three months of 2012, supported by demand from developing economies. Prices for most dairy categories have weakened in the year to date, mainly due to an oversupply of milk resulting from sustained good weather in most milk producing regions. Similarly, US cheese prices have also declined in response to strong US milk production. Robust demand for higher end whey products continues, reflecting very good demand across all sectors of nutritionals, with prices firm in the face of tight short-term supply of these key ingredients.

In the first quarter, to the period end 31 March 2012, Glanbia’s total revenue grew 1.9% when compared with the first three months of 2011. Volume was down 1.5% as lower volumes in Dairy Ingredients and Agribusiness more than offset growth in Global Nutritionals. Overall pricing was up 3.4% driven by higher year on year pricing in Global Nutritionals.

John Moloney, group managing director of Glanbia, comments: “The group is performing in line with expectations in what is a more challenging operating environment this year. We expect to deliver earnings in the first half of 2012 which are broadly similar to an exceptionally strong first half in 2011. We are successfully driving growth in nutritionals and the depth and strength of the portfolio in these dynamic growth sectors positions Glanbia well for the future. We remain focused on strong cost management and operational execution across the business. We reiterate our full year guidance of 5% to 7% growth in adjusted earnings per share, on a constant currency basis, for 2012.”

French drinks group Remy Cointreau has reported a 13% increase in full year turnover to Eur1.03 billion, including a 21.9% rise in Remy Martin sales to Eur592.5 million. All regions of the world contributed to the increase, with double-digit organic growth in the US and Asia. The strong results were driven by the move up market of the group’s brand portfolio and a particularly effective distribution network.

“This performance confirms the group’s strategic orientation initiated over the past years – a distribution structure, in close proximity to the markets and a growth strategy focused on the premium segment, supported by innovation with strong yet targeted investment behind our brands, in order to reinforce our long-term value strategy,” comments Jean-Marie Laborde, chief executive of Remy Cointreau. “This year, Remy Cointreau has, once again, demonstrated a capacity for growth by combining the attraction of its brands and the efficiency of its distribution network. We will continue the deliberate move of our products up market and the quality of the work we carry out in our markets.”

Remy Martin performed strongly throughout the financial year with 25.1% organic turnover growth to Eur592.5 million and double-digit growth for the third consecutive year, as it continued to improve its position in the global market.

Liqueurs and Spirits saw a recovery with renewed organic growth of 5.1% to Eur215.8 million after a number of more difficult years. All brands reported growth in the 2011/12 financial year. Cointreau achieved growth in key markets such as the US, as well as in Japan and in emerging markets such as Brazil and Mexico. Mount Gay Rum and Metaxa (on the back of weak comparatives due to the Greek crisis) recorded growth in their respective markets.

Partner Brands posted organic growth of 4.1% to Eur217.8 million. The growth in brands distributed for Remy Cointreau’s partners was primarily driven by Scotch whiskies in the US and the Travel Retail segment. The champagne business continued its development, particularly, Piper-Heidsieck.

The favourable movement in the US dollar over the second half of the year continued to narrow the variance between organic and published growth. Remy Cointreau confirms a substantial increase in its full-year results, with significant double-digit growth in current operating profit to the end of March 2012.

Buoyed by strong performances from its sugar business and its Primark retail arm, Associated British Foods has reported a 3% rise in profit before tax to £329 million on group revenue up 11% to £5.77 billion for the 24 weeks ended March 3rd 2012. AB Sugar increased revenue by 17% to £1.2 billion and operating profit by 59% to £172 million over the previous year. This was driven by a strong increase in the UK, further improvement in Spain and a better performance from Illovo.

In the UK, sugar production for the full year is expected to be 1.3 million tonnes, compared to just under 1.0 million tonnes last year which fell short of sales quota. British Sugar’s interim profit was well ahead of last year reflecting an excellent sugar beet campaign, strong factory performance and higher EU prices.

ABF’s grocery revenue increased by 4% to £1.81 billion but operating profit fell by 31% to £75 million, primarily due to restructuring costs at George Weston Foods in Australia and Allied Bakeries in the UK, margin declines at Allied Bakeries and higher than expected costs of operating the Castlemaine meat factory in Australia.

Allied Bakeries is continuing to roll out the largest capital development programme within the UK bakery industry to improve manufacturing efficiency and upgrade product quality. Construction of the new bread plant and bulk handling at the Stockport bakery is well under way and due to begin commissioning in June. A rationalisation charge has been taken for the closure of two smaller bakeries and the cost of further overhead reduction.

Ingredients revenue increased by 2% to £538 million during the first half but operating profit declined by 42% to £18 million as the challenges experienced by the yeast and bakery ingredients business, seen particularly in the second half of last year, continued. Operating profit was adversely affected in a number of regions by input cost pressures, increased competition and volume weakness. The performance in Europe was adversely affected by increased competition which has made price increases to recover higher input costs difficult to achieve. Bakery ingredients in Spain continued to grow and commissioning of a new plant in Cordoba is expected at the end of the financial year. A rationalisation charge has been taken for a reduction in overhead in the European region.

Primark achieved strong first half revenue growth of 15% to reach sales of £1.62 billion but operating profit rose by a more modest 2% to £154 million.

Looking ahead to the second half of the year, AB Sugar’s investment over recent years, its focus on maximising capacity utilisation and operational efficiency and the strength of regional sugar prices, are expected to drive the full year profit for sugar well ahead of last year. This, together with solid profit growth from Primark in the second half, is expected to more than offset the lower profit in grocery and ingredients.

Strong returns from international dairy markets and increasing on farm milk production, which created higher processing throughputs, helped Dairygold, the Irish farmers co-operative, to generate an operating profit on its core activities of Eur22.6 million for 2011, a 19.6% increase on the 2010 figure. Dairygold’s optimisation of its product and customer mix, together with improved operating efficiencies helped to increase profitability.

Turnover in 2011 was Eur757.8 million – up 9.3% on the previous year. The increase was generated across the main business activities of dairy processing and agri trading.

Dairygold’s dairy processing division (Dairygold Food Ingredients) had a strong year. Dairygold has well invested and highly efficient processing facilities which benefited from investments of over Eur60 million in the last four years. The investment included an upgrade at Dairygold’s ingredients facility at Mitchelstown to facilitate the increased supply requirements of the expanded Danone infant formula facility at Macroom.

Dairygold chief executive Jim Woulfe comments: “In the dairy operations, improved markets and the higher throughput increased turnover and this along with continuous improvement in efficiencies helped to deliver improved results. The agri operations benefitted from increased on-farm activity which helped the performance of the fertiliser and feed businesses.”

In 2011 Dairygold invested a total of Eur33.9 million in the business – Eur15.4 million in capital expenditure and Eur18.5 million in acquiring a portfolio of strategic property assets from Reox Holdings. The co-op’s net debt was reduced by Eur13.6 million before the investment of Eur18.5 million on the acquisition of a portfolio of assets from Reox Holdings, which increased the net debt by Eur4.9 million to Eur67.2m at the year end.

Lakeland Dairies, Ireland’s second largest dairy processing co-operative, has reported an 18% increase in revenues to Eur472 million and a 52% rise in operating profit to €6.85 million for the year ended 31st December 2011.Lakeland exports to over 70 countries offering some 170 branded dairy products to customers. In 2011,Lakeland processed over 700 million litres of milk into a range of value added dairy food service products and food ingredients.

“While global economic and trading conditions continued to be difficult, it has been an excellent year for Lakeland Dairies where we are benefiting from our recent investments in advanced processing capabilities together with focused and intensive business development activities,” says Michael Hanley, chief executive of Lakeland Dairies.

He continues: “During the year, we further developed our market leading presence in Europe and expanded our position as the dairy foodservice market leader in the United Kingdom and in Ireland. We delivered specialist, value added products to the global foodservice, confectionery, bakery and other food industry sectors.  We are market leaders in emulsion technology where we provide dairy based products that delight our customers through their functionality and taste qualities in foods, whether that is in restaurants or retail.”

The turnover figure of Eur472 million was underpinned by strong sales, a maximised milk processing throughput, enhanced logistical capabilities and an ongoing operational efficiency programme across the organisation. This contributed to a further strengthening of the balance sheet with shareholders’ funds of Eur81 million at year-end.

Looking ahead, Michael Hanley comments: “The global economy has slowed with markets facing considerable uncertainties. Prices remain under pressure as food companies compete to retain market share among cost conscious consumers. There is also a global oversupply with surplus product coming onto the market from New Zealand and the United States in particular.  This will place significant pressure on milk processing returns throughout the year.  A weaker euro is required to make Irish exports more competitive. However, with continuing sales and volume increases we still anticipate further solid progress by Lakeland Dairies.”

Despite the difficult economic conditions, Hilton Food Group, Europe’s leading specialist retail meat packing business supplying major international food retailers in twelve countries, made good progress during 2011. The group has reported a 10% rise in profit before tax to £24.5 million as it increased the volumes of meat packed by 6% and revenue by 14% to £981.3 million for 2011. Revenue growth was driven by the start-up of a new packing facility in Denmark and comparatively strong economic conditions in Sweden and Central Europe.

Volume growth of 6.0% reflected the new business in Denmark as underlying volumes were slightly reduced, due to pressure on consumer spending levels in the face of increased meat prices. Continued strong cash generation has enabled the UK-based meat group to maintain a high level of investment in equipment and facilities, to underpin the growth of its businesses over the longer term.

The group has a strong balance sheet, with net debt level at £18.7 million only marginally increased, despite capital expenditure of £25.2 million in 2011, which included £14.6 million on the new Danish facilities. Indeed, over the eight years to December 2011, Hilton has invested over £140 million on developing its packing and storage facilities.

74% of the group’s revenue is now generated outside the UK, with 77% of the volume of meat packed outside the UK, in Northern and Central European countries.

Robert Watson OBE, chief executive of Hilton Food Group, comments:  “Once again I am pleased to report that during 2011 Hilton has delivered a good performance, continuing to demonstrate the resilience of the group’s business model. Revenue growth was strong in 2011 and further success was achieved with new product and packaging initiatives. We have been able to maintain a high level of investment in our modern meat packing facilities across Europe, designed to keep them at state-of-the-art levels.”

Barry Callebaut, the world’s leading manufacturer of high quality cocoa and chocolate products, increased its sales volume by 6.7% for the first half year ended February 29, 2012 to again outperform the worldwide chocolate confectionery market. All the company’s regions and product groups contributed to the volume growth.

Barry Callebaut reported a 3% rise (up 10.4% in local currencies) in sales revenues to SFr2.48 billion but operating profit (EBIT) fell 12.5% (5.5% in local currencies) to SFr175.1 million (Eur145 million).

Significant investments in operating structures to support further growth, ramp-up costs related to recent long-term partnership and outsourcing agreements, investments in the growth of the Gourmet & Specialties Products business as well as multiple capacity expansions led to higher operating expenses, negatively impacting EBIT. Net profit from continuing operations declined by 11.3% in local currencies (-18.0% in SFr) to SFr121.8 million.

In the second quarter, Barry Callebaut’s largest region, Europe, returned to positive growth rates and reported a strong volume increase of 3.0%, compared to -0.1% for the respective chocolate market. Overall, sales revenue in Region Europe rose by 4.7% in local currencies (-3.2% in SFr) to SFr1.17 billion. Higher factory and supply chain costs as well as investments in sales and promotion, primarily in the Gourmet business, impacted operating profit (EBIT), which decreased by 12.2% in local currencies (-18.2% in SFr) to SFr114.5 million. Barry Callebaut closed the sale of its European Consumer Products business Stollwerck in September 2011. This led to a non-recurring loss of SFr 31.7 million for the reported period.

In order to readjust the structures and processes after the sale of the Consumer Products business, Barry Callebaut will spend Eur30 million for a comprehensive reengineering project, called ‘Spring’, over the next two years. The main focus of Project Spring is on Western Europe. The company expects the restructuring to yield yearly recurring efficiency gains of at least Eur10 million.

With beer volumes rising by 7%, British regional brewer and pub operator Adnams has increased operating profit (before exceptional items) by 2.8% to £3.3 million on sales up by 7.3% to £54.6 million for the 12 months to 31 December 2011. On the retail side of its business, profit per pub was up by 15% and like-for-like shop turnover was 13% higher.

“For many years Adnams has championed the importance of taking a long-term view,” explains chairman Jonathan Adnams (pictured). “We firmly believe that it is by taking a values-based approach to business, building trust and loyalty with our customers, employees and shareholders that we carve a path to sustainable business success. By investing for the long-term, we have been able to make reductions in our carbon emissions and it is this approach that has contributed to our being able to hold Adnams beer prices for the fourth consecutive year.”

He adds: “Despite sounding a note of caution about economic uncertainty, our response to the current conditions is to keep an eye on costs, but we will not be distracted from our long-term goals and will continue to invest for the future.”

Finsbury Food Group, a leading UK manufacturer of cake, bread and morning goods, has increased revenue by 16% to £102 million for the six months ended 31st December 2011 to pass the £100 million interim sales milestone for the first time. Profit before tax grew by £0.3 million to £2.2 million.

The group achieved growth across each of its businesses. Sales in the Bread & Free From division of £25.6 million represent an increase of 8% on the comparable period last year. This was again driven by strong growth in the fresh gluten free market and the speciality bread market from the Genius/retailer brands and the Vogel’s brands respectively.

John Duffy, chief executive of Finsbury Food Group.

Sales in the larger Cake division were up 19% to £76.4 million. The UK market and export sales have both shown growth although the former has continued to require increased promotional support to remain competitive and deliver growth in the current marketplace.

John Duffy, chief executive of Finsbury Food Group, comments: “We are pleased to be reporting further growth across each of the Finsbury businesses. This is particularly noteworthy considering the pressure we are seeing from high commodity and input price inflation. With this in mind, we are focused on driving both efficiency and productivity to mitigate against the negative margin impact of these pressures, and believe that the measures we are taking will continue to bear fruit.”

He adds: “Our priority is to further invest in the business to ensure that the growth momentum continues and look forward to both driving further shareholder value and reaching our next sales milestone.”

Despite the challenging trading environment, AG Barr has increased revenue and volume ahead of the UK soft drinks market to produce a strong profit performance. Turnover increased by 6.6% to £237.0 million for the year ended January 28th 2012 – a cumulative 27.6% increase in turnover over the last three years – and pre-tax profits, excluding exceptional items, increased by 6.2% to £33.6m reflecting the benefits of sales volume and value enhancing revenue growth and strong cost containment measures. Post exceptional items, profit increased by 16.4% to £35.4 million. All core brands performed well, with particularly strong growth in the company’s exotic juice brands, Rubicon and KA.

AG Barr delivered growth across both the carbonates and stills segments. In stills, AG Barr grew revenue by 9.4% against a market performance of 3.8%. This was primarily driven by growth and innovation in the exotic juice drinks brands – Rubicon and KA. AG Barr is continuing with its strategy of concentrating investment around the core brands Irn-Bru, Barr, Rubicon and KA.

Roger White, chief executive of AG Barr.

“AG Barr has demonstrated its resilience in the face of challenging market conditions, in particular coping with substantial raw material cost headwinds while achieving revenue growth based on brand development, innovation and improved focus on execution,” says Roger White, chief executive of AG Barr. “Our operational performance improved substantially in the final quarter of last year and we are now beginning to see the benefits of our investment in our production assets. We are further reinforcing our confidence in our future growth prospects with the confirmation of our plans to invest in a new site, with substantial future capacity, in the Milton Keynes area.”

He continues: “We anticipate 2012 will be another challenging year in the UK, with household disposable incomes remaining under pressure. Despite this, we remain confident that our financial strength, backed up with strong sales momentum across our core brands, excellent innovation and our anticipated capital investment programme will facilitate further good progress.”

Stock Spirits Group, Central Europe’s leading branded spirits and liqueurs business, has reported a 4.1% increase in EBITDA to a record Eur63.9 million on a like-for-like basis for 2011. On a constant currency basis, EBITDA rose by 6% but revenue at Eur295.1 million was slightly down on a like-for-like basis compared to the Eur301.9 million generated in 2010.

Stock Spirits Group retained spirits market leadership in Poland with a 34% market share during the year and also managed to improve margin to offset market volume decline and cost increases, through focus on profitable products, selective price increases and a better marketing mix. The group also strengthened its market leadership position in Czech Republic, with overall share growth to 40%, and grew market share in Italy within a very challenging market.

Significant brand and NPD investment was made during the year to continue the expansion of the portfolio. This entailed meeting consumer demand for new flavoured vodkas through strong growth in Lubelska, including the successful launch of the blackcurrant variant and recently launched grapefruit flavour and Lubelska Three Grain clear.

Stock Spirits Group also successfully secured new banking facilities during the year to strengthen its financial position. The refinancing consists of a Eur220 million facility, including funding for acquisitions.

Chris Heath, chief executive of Stock Spirits Group, comments: “Against a very challenging market backdrop, I am delighted that we have been able to deliver another very strong set of results in 2011, continuing our unbroken record of profit growth each year. Faced with falling market volumes and significant input cost increases, it is important that we were well positioned to capitalise on the strength of our brands, taking the lead on market pricing and managing our product and marketing mix to deliver margin growth. We are particularly pleased to have maintained, and in some cases extended, the leading positions of most of our core brands in our key markets and have continued with our successful track record of launching new products.”

He adds: “Despite the continued challenging market conditions, we remain confident that the group is well placed to take advantage of opportunities to grow the business further in 2012.”

Premier Foods has reported a 29.3% drop in trading profit for ongoing business to £173.7 million for 2011 on sales down 3.4% to £1.81 billion. The UK food group has been disposing of assets to reduce its debt mountain. The sales of the Meat-free, Canned grocery and Brookes Avana businesses realised total net proceeds of £394 million and helped to cut net debt to £995.1 million at the 2011 year end.

Sales in the group’s Grocery division decreased by 7.4% to £1.10 billion during 2011 and trading profit declined by 19.1% to £170.3 million. Total sales for the Bread division increased 3.4% in 2011 to £711.3 million but trading profit collapsed from £35.3 million in 2010 to £3.4 million. Hovis bread branded market share was broadly flat during the year, while non-branded volumes were lower, partly as a result of a contract loss.

Michael Clarke, chief executive of Premier Foods, comments: “2011 was clearly a challenging year for Premier Foods. Like many others in the industry, we felt the impact of significant commodity inflation and an unprecedented decline in consumer spending. Unfortunately,our price increases were not able to fully recover higher costs and were largely negated by higher promotional spending which affected margins. In addition, as consumers looked for greater value, we were unable to maintain demand for our brands due to reduced marketing investment. Retail customer support for our brands consequently declined in favour of our competitors and own label, a situation that was exacerbated by the effect of customer disputes.”

He continues: “Despite its significant scale, the group has been unable to fully exploit revenue and cost synergies. The business remains complex with insufficient focus and has additionally suffered from a lack of investment behind its brands and a short-term, tactical approach to trading. The need to service significant debt has compounded these challenges.”

Premier Foods has just successfully negotiated a re-financing of the business with banking facilities of £1.4 billion extended to June 2016 and banking covenants re-set to support the new management team’s strategic plan for turning the business around.

Premier Foods’ new growth plan entails concentrating marketing investment behind eight ‘Power Brands’. This investment will double in 2012 with sustainable increases planned in subsequent years. Premier Foods will also focus on building collaborative relationships with key customers to drive mutual growth, while targeting gross 4% year on year supply chain savings and doubling of overhead savings to more than £40 million by 2013.

However, the consumer environment in the UK remains challenging. “Consumers will continue to focus on value and convenience; and competition will again be intense,” Michael Clarke points out. “There is no doubt that we will need to work hard to make our brands stand out. Nevertheless, our performance thus far in 2012 is in line with our expectations. I’m convinced we have the right team to turn this business around and I am very positive about our future.”

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Aryzta, the Switzerland-based global speciality bakery group, has reported a 3.3% rise in EBITA to Eur178.8 million on revenue up 0.9% to Eur1.91 billion for the six month period ended 31 January 2012, as its Food Group increased EBITA by 11.3% to Eur173.0 million and revenue by 9.4% to Eur1.40 billion.

Aryzta has operations in North America, South America, Europe, Asia, Australia and New Zealand. It is also the majority shareholder (71.4%) in Origin Enterprises, the agri-services group with interests in food and marine proteins and oils. Revenue at Origin Enterprises declined in the period by 17.0% to Eur507.4 million and EBITA fell by 66.8% to Eur5.9 million.

Aryzta’s Food Europe business increased EBITA by 12.4%.to Eur74.2 million on sales up by 7.5% to Eur629.0 million.

Owen Killian, chief executive of Aryzta, comments: “Underlying performance was robust despite challenging trading conditions. 2012 remains a critical year of transformation for Aryzta with significant ATI driven change underway across the group to enhance our customer centric focus. This, combined with our strengthened balance sheet, will enhance future shareholder value from growth with existing customers and sector consolidation opportunities.”

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Anheuser-Busch InBev has increased revenue by 4.6% to $39.05 billion in 2011 as its three global brands of Budweiser, Stella Artois and Beck’s grew by 3.3%. However, total group volumes decreased 0.2% during the year, with own beer volumes decreasing 0.1%.

The world’s leading brewer grew EBITDA by 10.7% in nominal terms and 7.7% organically to $15.36 billion, with EBITDA margin expanding by 113 bps to 39.3%. Profit rose by 28.0% in nominal terms to $6.45 billion during 2011.

Anheuser-Busch InBev increased market share ahead of the previous year in Argentina, China, Germany, Belgium and Ukraine, but it was down in the UK and a slightly lower in Canada and Russia. In Brazil, share for the year declined but was still the second highest in ten years. In the United States, share contraction was concentrated in the group’s sub-premium brands, while its focus brands performed well in line with its brand strategies.

Anheuser-Busch InBev made significant progress towards its ambition for Budweiser to become the first truly global beer brand. Budweiser grew volume by 3.1% globally, with almost 44% of the brand’s sales now coming from outside the United States, compared to only 28% just three years ago.

Stella Artois continued its expansion with volume rising 5.9%, driven primarily by growth in the United States, Brazil and Argentina. The brand also performed solidly in the UK, where it benefited from the introduction of Stella Artois Cidre. Another big step forward was the introduction of Stella Artois in three major cities in China – Shanghai, Beijing and Guangzhou. Growth has also continued in markets as diverse as Canada, Russia and Ukraine.

Beck’s global volumes grew by 0.8% in 2011, mainly driven by results in its home market of Germany, supported by good results in China.

Anheuser-Busch InBev is continuing to invest in future growth, building new breweries and upgrading existing facilities in markets as diverse as China, Brazil, Argentina and Paraguay. Net capital expenditure for 2011 was $3.3 billion.

The group’s European businesses had mixed fortunes. Western Europe delivered a strong performance in 2011, with market share gains in all markets except the UK. Western European EBITDA improved 5.5% to $1.23 billion with margin improvement of 313 bps to 31.0%, largely driven by own beer volume growth and fixed cost management initiatives.

Central and Eastern Europe volumes decreased 4.0% during 2011 and EBITDA declined 31.5% to $225 million mainly due to higher commodity costs, distribution cost increases above inflation as a result of higher transport tariffs at the beginning of the year, and higher brand investments.

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Driven by its strong brands and international business, UK soft drinks company Nichols increased sales by 18% to £98.9 million in 2011 and profit before tax by 20% to £18.1 million. Nichols’ UK soft drinks sales outperformed the market, increasing by 15%, more than twice the market growth rate of 7%. Whilst Vimto remains the key brand, the company is also continuing the strategy of broadening the portfolio and in April 2011 launched the Levi Roots range of Caribbean drinks, which added an incremental £2.5 million sales in its first 9 months of trading.

With the economic downturn continuing to affect the UK consumer, the importance and strength of Nichols’ significant international business is evident. In 2011 total international sales grew by 31% against the prior year, sales to the Middle East were 24% higher on the back of strong in-country sales of the Vimto brand and African sales were up by 28%.

“2011 was another record year with an outstanding performance in the face of the most challenging UK retail environment seen in a decade,” comments John Nichols, non-executive chairman of Nichols. “While 2012 will remain challenging we are confident of delivering profitable growth in the current year and beyond.”

Swiss chocolate confectionery manufacturer Lindt & Sprungli has reported a 1.9% increase in net income to SFr246.5 million on group sales down a 3.5% to SFr2.49 billion for 2011 as adverse exchange rates impacted. However, on an organic basis, Lindt & Sprungli achieved sales growth of 6% to meet its strategic growth target, and improved its EBIT margin by 60 basis points to 13.2% to exceed its objective of improving annual earnings by 20 to 40 bps.

In flat to slightly declining chocolate markets, all the group’s subsidiary companies, with the exception of Australia, grew faster than their markets and consequently gained market shares. Indeed, Lindt & Sprungli outstripped the average organic growth of the group in its most important and biggest markets with Lindt and Ghirardelli in the USA and Lindt in Germanyand France. The strong franc and increasingly widespread economic weakness affected in particular exports from Switzerland and the Travel Retail business.

Despite the continuingly difficult and challenging trading environment, Lindt & Sprungli is maintaining its long-term targets which provide for annual organic growth of 6 to 8% with an increase of the EBIT margin by 20 to 40 basis points each year.