Delivering stabilisation and growth strategies on track
• Underlying sales, excluding Milling, up 1.1%
• Power Brand sales up 2.0%, Grocery Power Brand sales up 4.9%
• Underlying Trading profit up 3.2%
• Marketing investment increased 40%
• Power Brand portfolio consistently gaining market share
• Cost reduction programme to deliver £40m savings by year end, ahead of 2013 plan
• Disposal programme on schedule
• Full year outlook unchanged
Premier Foods today announces its Half Year results for 2012, confirming the Group’s stabilisation plans and growth strategies remain on track.
Commenting on the Half Year, Michael Clarke, Chief Executive Officer, said:
“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. 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 we will now deliver the previously announced £40 million savings by the end of 2012. 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.”
Sales excl Milling
Power Brand Sales
Adjusted earnings per share3 (p)
* - Includes disposed of Canned grocery and Irish Brands businesses in 2011 and restructuring costs associated with these divestitures in 2012.
A presentation to investors and analysts will take place today, 7 August 2012, at 9.30am at The Lincoln Centre, 18 Lincoln’s Inn Fields, London, WC2A 3ED. The presentation will be webcast at www.premierfoods.co.uk. A recording of the webcast will be available on the Group’s website later in the day.
A factsheet for the Half Year results is available at www.premierfoods.co.uk
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
Lisa Attenborough, Director of Communications +44 (0) 1727 815 850
Maitland: +44 (0) 20 7379 5151