17th Jan 2020 08:15
(Alliance News) - Branded foods maker Premier Foods PLC on Friday left its full-year guidance unchanged after sales rose and it outperformed the market during its pivotal third quarter
Premier Foods said sales in the 13 weeks to December 28, which includes the Christmas trading season, rose by 2.6%.
In the UK alone, sales were up by 3.6%, its tenth successive quarter of growth, Premier Foods said.
Chief Executive Alex Whitehouse said: "Our biggest brand, Mr Kipling, has again been instrumental to this continuing momentum, with increased sales of 10% supported by TV advertising and new product ranges. Our more seasonally focused brands grew by over 5% in the quarter and in 2019 we sold over 200 million mince pies, 7% more than 2018.
"This performance, in our key trading period, reconfirms our unchanged profit expectations for the full-year."
For the whole financial year to December 28, sales were up 2.5%. In the UK alone, they climbed 3.3%.
Grocery sales, which includes names such as the Bisto gravy brand and Ambrosia custard, saw sales rise by 0.3% year-on-year in the third quarter. Also helping the increase were sales of stuffing brand Paxo over the Christmas period.
Sweet Treats sales climbed 8.0%, with Mr Kipling notching growth in the category for the eighth quarter on-the-trot.
The laggard was its international business, where sales were 17% lower in the third quarter, a "disappointing result", Premier said.
The company added: "With new leadership now in place, the group is implementing a revised and more focused approach in order to deliver more consistent sustainable growth, building bigger businesses in selected markets. As it transitions to this new approach, further progress is expected to be deferred to the 2020/21 financial year."
The company also plans to make GBP5 million in savings through a cost-cutting programme, which Premier Foods said is "progressing well".
In the pipeline for the remainder of the financial year is a new range of Mr Kipling pies and tarts and a Cadbury creme egg chocolate cake, set to be launched in time for Easter.
Premier Foods has a licence arrange with Cadbury, which is owned by US confectionary firm Mondelez International Inc.
Cadbury's creme egg range is a common fixture on UK supermarket shelves in the run-up to Easter.
Shares in the company were down 0.6% at 42.74 pence each early on Friday morning in London.
By Eric Cunha; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Premier Foods