10 November 2015

We announce our Half Year 2015/16 Interim results

We announce our Interim results for the 26 weeks ended 3 October 2015 and our exciting partnership with Paul Hollywood.

Branded sales growth driven by innovation and investment

- Branded sales in H1 increased +0.1% and Q2 up +1.6%; first quarterly increase for two years
- Trading profit2 increased +8.4%
- Adjusted profit before tax up +21.6% and adjusted earnings per share increased +21.9%
- Operating profit £23.3m, up £36.1m on FY15 H1
- Profit after tax £21.7m, compared to prior period loss after tax (£49.1m)
- Net debt of £585.3m in line with expectations; will reduce significantly in H2
- Combined pension deficit reduced to £32.8m from £211.8m
- Announces introduction of new brand; Paul Hollywood premium baking mixes

Gavin Darby, CEO: “We are pleased to see Group branded sales growth in both the first half and second quarter of this financial year, as well as Trading profit progression. This reflects the clear benefits from our continued commitment to brand investment and innovation. It is also encouraging to see strong sales growth in our International business following the investment we’ve made in additional resources.”

“In the third quarter of the year, we expect to deliver positive Group branded sales growth, with Sweet Treats performing more strongly than Grocery. The industry backdrop remains a challenging one, but with strategies which are delivering tangible results and significantly higher marketing spend planned for the second half, our profit expectations for the year remain unchanged.”

“In our Sweet Treats business, we are on track to deliver double digit margins in FY15/16 a year earlier than previously expected. Looking further forward, we remain committed to investing for sales and profit growth, and expect to deliver branded sales growth for the Group of 1-2% in FY16/17 and the medium term.”
Continuing operations FY16 H1 FY15 H1
Revenue 341.2 343.9
Operating profit / (loss) (£m) 23.3 (12.8)
Profit / (loss) after taxation (£m) 21.7 (49.1)
Underlying Results FY16 H1 FY15 H1 Change (%)
Branded Sales (£m) 306.6 306.4 0.1%
Trading profit (£m)2 50.6 46.7 8.4%
Adjusted profit before tax (£m)4 28.1 23.1 21.6%
Adjusted earnings per share (pence)4 2.7 2.2 21.9

Measures above are defined on page 2 of our full release and reconciled to statutory measures in the appendices, where necessary

A presentation to investors and analysts will take place today, 10 November 2015, at 9.00am. The presentation will be webcast at 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:

For further information, please contact:
Investors and analysts:  
Alastair Murray, Chief Financial Officer +44 (0) 1727 815 850
Richard Godden, Head of Investor Relations +44 (0) 1727 815 850
Media enquiries:  
Richard Johnson, Corporate Affairs Director +44 (0) 1727 815 850
Maitland +44 (0) 20 7379 5151
Greg Lawless  
Tom Eckersley  
- Ends -

10 November 2015

Our exciting new partnership with Paul Hollywood

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