26th May 2005 07:02
Premier Foods plc26 May 2005 26 May 2005 (for release at 7am) Premier Foods plc AGM statement Premier Foods will hold its Annual General Meeting today at 2pm, atHaberdashers' Hall, 18 West Smithfield, London EC1A 9HQ. David Kappler, Chairman of Premier Foods, will make the following statement toshareholders: "Premier Foods is pleased to announce that current trading for the grocerybusiness has continued to improve after the slow start to the year we reportedin March, and that the overall trading outlook for the Group remains in linewith our expectations. We remain confident that the Group's full year results will be in line with ourstrategic targets, underpinned by a strong pipeline of new product and categorydevelopment which will help to drive branded sales growth in the second half ofthe year and beyond. Our cost reduction programme is progressing to plan. The Bird's Custard and desserts business, which we acquired from Kraft inFebruary 2005, is trading in line with our assessment at the time of theacquisition and the integration of production into our Knighton factory isprogressing well. We are enthusiastic about the potential for this businessunder our ownership. Earlier this week, we were pleased to announce that Premier have signed afive-year agreement with Cadbury Trebor Bassett ("Cadbury") under which Premierwill continue to manufacture instant cocoa-based hot beverages for Cadbury fromMay 2006. The anticipated financial impact of moving to the new agreement is inline our expectations. MBM continues to trade in difficult conditions. The effect of the supplierrationalisation by the major retailers, which we referred to in March, willimpact on the sales and profitability of the business over the second half ofthe year. Since that time we have acquired additional volume, which will benefitthe latter part of the 2005/06 potato season. This, together with ourrestructuring of the company's packing operations to re-align capacity withdemand, should lead to improved performance in 2006. In relation to the Sudan 1 product recall, our evaluation of the maximum quantumof the exposure is supported by the claims experience we have seen to date andour assessment of the insurance position remains unchanged. As a consequence,the Group continues to believe it has no material financial exposure in relationto this matter. Premier is well positioned in the consumer market, with a solid base of brandedproducts with excellent market shares. Its cost cutting initiatives and tightoperational controls continue to improve margins and benefit cash flows. We areconfident that this focus will enable the group to continue to build on itsstrong platform over the medium to long term and will provide the freedom toinvest, when and where the right opportunities occur, to continue building astrong UK branded business, delivering value to our shareholders." Enquiries: Paul Thomas, Finance DirectorGwyn Tyley, Investor Relations ManagerPremier Foods plc Tel: 01727 815 850 Michael BerkeleySara BatchelorAnthony KennawayCitigate Dewe Rogerson Tel: 020 7638 9571 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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