Media

23 July 2013

Half Year results for the six months to 30 June 2013

Premier Foods today announces its Half Year results for 2013, demonstrating continued strong momentum against its strategies.

Trading profit up 50%, Full Year expectations raised.

  • Grocery Power Brand sales up 4.0%, delivering six successive quarters’ growth
  • Underlying business Trading profit up 50% to £47.4m
  • Bread restructuring programme well ahead of plan
  • £20m SG&A cost savings activity delivered
  • Additional £10m annualised complexity cost savings to be delivered in H2
  • FY 2013 Trading profit expected to be around the top end of market expectations
  • Recurring cash flow guidance for 2013 raised to £50-70m

Premier Foods today announces its Half Year results for 2013, demonstrating continued strong momentum against its strategies.

Gavin Darby, Chief Executive Officer, said:

“A 50% increase in Trading profit is a very encouraging result given the highly competitive environment. This shows that our turnaround strategy is delivering at the bottom line.  We have now grown sales in our Grocery Power Brands for six consecutive quarters as we continue to build partnerships with our customers, deepen our understanding of consumers and invest more effectively in supporting our brands.

“We have already completed the actions to deliver the promised £20m of overhead cost savings for 2013 and continue to keep a tight control over costs. The restructuring of our bread and milling business is ahead of plan and we are taking the decisions necessary to create a more sustainable platform for this business.

“The second half will see further plans to grow our Power Brands, in addition to a new £10m of cost savings that we have now identified from our efforts to reduce complexity.  As a result, we now expect Full Year Trading Profit to be around the top of market expectations.

“Looking further forward, we will continue to drive profitable top-line growth by focusing on growing our categories supported by ongoing cost savings from reducing complexity. At the right time, we will address our capital structure – from a position of growing strength given the delivery of our turnaround plan and the performance of our Power Brands.  I am excited by the potential offered by Premier Foods in the longer term.”

  2013 H1

2012 H1 

 Change
Underlying Business    
 Sales (excl. Milling) (£m) 621.2 626.8 (0.9%)
 Grocery Power Brand sales (£m) 253.2 243.6 4.0%
 Trading profit (£m) 47.4 31.6 50.2%
    
 Continuing operations   
 Sales (£m)  742.2 852.8 (13.0%)
 Trading profit (£m) 48.9 72.4 (32.4%)
 Adjusted profit before tax (£m) 21.6  30.1 (28.2%)
 Basic (loss) per share (pence) (6.4) (17.2)  62.8%

A presentation to analysts will take place today, 23 July 2013, at 9.00am at the London Stock Exchange, 10 Paternoster Square, London, EC4M 7LS. Attendance is by invitation only. The presentation will be webcast at www.premierfoods.co.uk. A recording of the webcast will be available on the Company’s website later in the day.

A factsheet of the Preliminary results is available at www.premierfoods.co.uk/investor-relations/results-centre

For further information, please contact:

Institutional investors and analysts:
Mark Moran, Chief Financial Officer                    +44 (0) 1727 815 850
Richard Godden, Head of Investor Relations       +44 (0) 1727 815 850

Media enquiries:
Lisa Attenborough, Director of Communications   +44 (0) 1727 815 850

Maitland         +44 (0) 20 7379 5151
Tom Buchanan
Tom Eckersley

- Ends -

The Full Release can be viewed below:

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