23rd Jul 2015 07:38
LONDON (Alliance News) - Premier Foods PLC Thursday reported a drop in sales in the first quarter of its financial year as declines in its Grocery division offset growth in Sweet Treats, and it was hurt by the earlier timing of Easter.
The food producer, which makes brands including Bisto gravy, Mr Kipling cakes and Sharwoods cooking sauces, said that group sales fell 1.6% to GBP166.2 million in the 13 weeks to July 4, as branded sales declined 1.4% and non-branded revenue decreased 3.1%.
Premier Foods said that sales were hit by the earlier timing of Easter, as declines in the Grocery division offset growth in Sweet Treats. It said that branded sales would have delivered a broadly flat results had Easter been later in the year, as the effect of the earlier holiday was 1.5% of sales.
"We are encouraged by the continued good volume and value response of our brands in those areas where we have focused our investment, although Branded sales in the quarter were impacted by the earlier timing of Easter. While the business environment remains challenging, our expectations for the year, including a significant reduction in net debt, remain unchanged," Chief Executive Gavin Darby said in a statement.
Shares in Premier Foods were trading down 1.3% at 41.95 pence early Thursday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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