TIDMPFD TIDMIRSH
RNS Number : 5787G
Premier Foods plc
20 July 2023
20 July 2023
Premier Foods plc (the "Group" or the "Company")
Strong Quarter 1, full year Trading profit expected to be at top
end of market expectations
Premier Foods today provides its Quarter 1 trading update for
the thirteen weeks ended 1 July 2023
-- Q1 Group sales up 21.1% versus prior year, Branded sales up
17.5%
-- Further Grocery market share(2,3) gains in the quarter, up
another 94 basis points
-- Mr Kipling delivered record market share in Australia and
continued to build further distribution in the US
-- New categories progress continues; sales of Ambrosia Porridge
pots and Cape Herb & Spice more than doubled
-- FY23/24 Trading profit now expected to be at top end of market
expectations(4)
Alex Whitehouse, Chief Executive Officer
"We've made a strong start to the year, sustaining the positive
momentum from previous quarters, with Q1 sales growth of 21.1%,
branded sales up 17.5% and further grocery market share gains. Our
sales performance was broad based, supported by ongoing brand
investment, new product development such as Mr Kipling Brownie
Bites and strong instore activation. Our portfolio, which helps
consumers make good value and nutritious, tasty meals at home,
continues to demonstrate a high level of relevance in the current,
challenging economic climate."
"We continue to make very good progress on our five pillar
growth strategy. In our International business, Mr Kipling has
achieved a record level of market share in Australia and has now
built distribution to 1,400 stores in the US. New categories sales
of both Ambrosia porridge and Cape Herb & Spice more than
doubled, while The Spice Tailor continues to secure incremental
distribution in the UK and overseas."
"We believe the recent period of significant input cost
inflation is now past its peak and have no further price increases
planned for the rest of 2023. With this positive momentum, and
strong plans behind our leading brands for the remainder of the
year, we now expect FY23/24 Trading profit to be at the top end of
market expectations."
Trading update
================
Grocery
The Grocery business delivered a very strong performance in the
quarter, as sales increased by 26.7% compared to last year. Branded
sales increased by 25.1%, with all major brands well ahead in the
quarter, translating into a further 94 basis points of market share
growth. Instore activation was also strong, and this contributed to
an improving volume trend towards the end of the period. With
consumer disposable incomes remaining under pressure, the Group's
Grocery brands continued to demonstrate their relevance, helping
consumers make affordable and nutritious meals at home, and as
illustrated by the Best Restaurant in Town campaign. Expansion into
new categories continues to progress well, and both Ambrosia
Porridge pots and Cape Herb & Spice more than doubled sales
compared to the prior year. Non-branded sales were 38.3% ahead of
last year and reflected pricing in retailer branded product
categories.
Sweet Treats
Sweet Treats sales grew by 7.6% in the period, demonstrating an
improving trend, with branded sales broadly flat and non-Branded
sales up 86.2%. Mr Kipling revenue increased by 3.6%, benefitting
from new product launches such as Signature Brownie Bites and
activity commemorating the King's Coronation. The high growth in
Non-branded sales was due to contract gains in pies and tarts and
pricing benefits on existing product lines.
International
Overseas sales were 14%(5) higher in Q1. The continued expansion
of Mr Kipling cake in the US has now reached distribution in over
1,400 stores, and additional seasonal products are planned for
launch in the coming months. In Australia, cake continued its
strong progress in market, demonstrated by record market share of
17.6%(6) . Additionally, household penetration of the Group's cake
brands has now increased by a further two percentage points.
Retailer stockholdings decreased in the period which resulted in
temporarily lower order levels, however this has now normalised in
quarter two. The application of the Group's proven branded growth
model strategy in Australia accelerated in the period, with brand
investment in the form of television advertising for Mr Kipling and
the launch of a number of new products including Mr Kipling
Signature Brownie Bites. Sales in Europe grew over 30% due to
increased distribution of Sharwood's in Germany and the Netherlands
as part of the Sharwood's European expansion plan.
Outlook
========
The Group has started the year off well, delivering strong sales
growth across its brand portfolio and further Grocery market share
gains. Looking ahead, revenue growth in the Grocery business is
expected to moderate in forthcoming quarters, as year on year
effects of higher prices reduce, while the trajectory for Sweet
Treats is expected to build through the second half of the
year.
The Company's portfolio continues to demonstrate a high level of
relevance to consumers in the current economic climate. Following a
strong first quarter, and with exciting plans behind the Group's
leading brands for the remainder of the year, it now sees Trading
profit for FY23/24 at the top end of market expectations. In the
medium term, the Group expects to unlock further significant
shareholder value through the delivery of its five pillar growth
strategy, as it builds on its successful core UK business and
applies this to new categories, overseas markets and inorganic
opportunities.
Ends
As one of Britain's largest food producers, we're passionate
about food and believe each and every day we have the opportunity
to enrich life for everyone. Premier Foods employs over 4,000
people operating from 15 sites across the country, supplying a
range of retail, wholesale, foodservice and other customers with
our iconic brands which feature in millions of homes every day.
Through some of the nation's best-loved brands, including
Ambrosia, Batchelors, Bisto , Loyd Grossman, Mr. Kipling, Oxo and
Sharwood's, we're creating great tasting products that contribute
to healthy and balanced diets, while committing to nurturing our
people and our local communities, and going further in the pursuit
of a healthier planet, in line with our Purpose of 'Enriching Life
Through Food'.
Contacts:
Institutional investors and analysts:
Duncan Leggett, Chief Financial Officer
Richard Godden, Director of Investor Relations
Investor.relations@premier foods.co.uk
Media enquiries:
Sarah Henderson, Director of Communications
Headland
Ed Young +44 (0) 7884 666830
Jack Gault +44 (0) 7799 089357
Conference call
================
A conference call for investors and analysts hosted by Alex
Whitehouse, CEO and Duncan Leggett, CFO, will take place today, 20
July 2023, at 9.00am, details of which are outlined below. A replay
of the conference call will be available on the Company's website
later in the day:
www.premierfoods.co.uk/investors/results-centre
Telephone number: 0800 358 1035 (UK toll free)
+44 20 4587 0498 (standard international access)
Conference ID: 282669
Telephone number: 0800 358 1035 (UK toll free)
+44 20 4587 0498 (standard international access)
Conference ID: 282669
- Ends -
Notes to editors:
1. Sales data is for the thirteen weeks to 1 July 2023 and 2 July
2022
2. Sales stated above are including The Spice Tailor and excluding
Knighton
3. Market share data sourced from IRI, 13 weeks ended 1 July 2023
4. Company compiled equity analyst forecasts for FY23/24 Trading
profit are GBP162.0m - GBP165.4m
5. International sales are stated on a constant currency basis
and include The Spice Tailor for the period of ownership.
6. Australia cake market share source: IRI, 12 weeks ended 18
June 2023.
7. All financial data detailed above is unaudited and has not
been subject to review by the Company's auditors.
Q1 Sales (GBPm) FY23/24 FY22/23 Change vs 1
year ago
Grocery
Branded 149.2 119.3 25.1%
Non-branded 22.3 16.1 38.3%
------- ------- -----------
Total 171.5 135.4 26.7%
Sweet Treats
Branded 50.1 50.3 (0.4%)
Non-branded 9.5 5.1 86.2%
------- ------- -----------
Total 59.6 55.4 7.6%
Group
Branded 199.3 169.6 17.5%
Non-branded 31.8 21.2 49.8%
------- ------- -----------
Total 231.1 190.8 21.1%
------- ------- -----------
This announcement may contain "forward-looking statements" that
are based on estimates and assumptions and are subject to risks and
uncertainties. Forward-looking statements are all statements other
than statements of historical fact or statements in the present
tense, and can be identified by words such as "targets", "aims",
"aspires", "assumes", "believes", "estimates", "anticipates",
"expects", "intends", "hopes", "may", "would", "should", "could",
"will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. Any
forward-looking statements in this announcement are made based upon
Premier Foods' estimates, expectations and beliefs concerning
future events affecting the Group and subject to a number of known
and unknown risks and uncertainties. Such forward-looking
statements are based on numerous assumptions regarding the Premier
Foods Group's present and future business strategies and the
environment in which it will operate, which may prove not to be
accurate. Premier Foods cautions that these forward-looking
statements are not guarantees and that actual results could differ
materially from those expressed or implied
in these forward-looking statements. Undue reliance should,
therefore, not be placed on such forward-looking statements. Any
forward-looking statements contained in this announcement apply
only as at the date of this announcement and are not intended to
give any assurance as to future results. Premier Foods will update
this announcement as required by applicable law, including the
Prospectus Rules, the Listing Rules, the Disclosure and
Transparency Rules, London Stock Exchange and any other applicable
law or regulations, but otherwise expressly disclaims any
obligation or undertaking to update or revise any forward-looking
statement, whether as a result of new information, future
developments or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTVKLFFXDLFBBZ
(END) Dow Jones Newswires
July 20, 2023 02:00 ET (06:00 GMT)
Grafico Azioni Premier Foods (LSE:PFD)
Storico
Da Gen 2025 a Feb 2025
Grafico Azioni Premier Foods (LSE:PFD)
Storico
Da Feb 2024 a Feb 2025
