21st Jan 2016 08:28
LONDON (Alliance News) - Premier Foods PLC on Thursday reported a rise in group sales in the third quarter of its financial year, driven by a strong performance in non-branded products and its Sweet Treats division.
Premier Foods, which makes brands such as Bisto gravy and Mr Kipling cakes, said group sales in the 13 weeks ended January 2 grew 0.1%, as 6.4% growth in non-branded sales offset a 1.0% decline in branded sales. In the nine months to the same date, group sales increased 0.3% as 5.3% growth in non-branded sales offset a 0.4% fall in branded sales.
By division, revenue in Sweet Treats grew 6.5% but Grocery sales declined 2.7% in the third quarter.
Premier Foods said Sweet Treats benefited from a "strong innovation programme", especially with Cadbury cake, but that grocery sales were held back by an "unexpectedly mild" December and a decision to reduce promotional activity of custard and rice pudding brand Ambrosia, which is also the reason for the decline in branded sales.
Non-branded sales benefited particularly from the sale of mince pies over the Christmas period.
Premier Foods added that its expectations for full-year profit remain unchanged.
Shares in Premier Foods were trading down 6.9% at 36.65 pence early on Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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