19th May 2015 07:49
LONDON (Alliance News) - Premier Foods PLC Tuesday reported a pretax loss in its recently-ended financial year as it booked impairment charges relating to the disposal of operations and its Sweet Treats business, but revenue benefited from additional months as the company altered the dates of its financial year.
The food producer, which makes brands including Bisto gravy and Mr Kipling cakes, reported a pretax loss in the 15 months to April 4 of GBP135.6 million, having made a pretax profit of GBP4.4 million in the 12 months to December 2013, as it booked an impairment on the disposal of operations, as well as a goodwill charge relating to its Sweet Treats business unit.
However, revenue grew to GBP964.3 million in the 15 months to April, from GBP843 million in the 12 months to December 31, 2013, benefiting from the additional 94 days it gained from changing its financial year to end in early April, having previously ended with the calendar year at December 31.
"While it is encouraging to note the return of volume growth to both our categories and the wider grocery market, we expect the near term trading environment to be challenging, and our expectations for the year are unchanged. I remain confident that our strategy of investing in brands, innovation and infrastructure is the right one for Premier Foods, and see increasing evidence that our efforts are starting to pay off," Chief Executive Gavin Darby said in a statement.
"The board is firmly focused on the creation of future value, and believes that its investment and growth strategies, combined with a focus on cost efficiency, trading profit delivery and organic deleveraging, are well positioned to deliver success," Darby added.
Shares in Premier Foods were trading down 0.9% at 46.56 pence early Tuesday.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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