6th Jul 2006 07:00
Premier Foods plc06 July 2006 Premier Foods plc ("Premier") Trading update for the six months to 1 July 2006 Premier continues to deliver strong branded sales growth and trading remains inline with its expectations Premier, one of the leading suppliers of grocery products in the UK, isproviding the following update for the six months ended 1 July 2006. We expect like-for-like sales growth for the Group to be in line with ourtargets, underpinned by the performance of our brands. The overall rate ofgrowth, including acquisitions, is further enhanced by the performance of Quorn,which has seen sales growth accelerate. Robert Schofield, Premier Foods plc CEO, said: "The first half of 2006 has reflected the continued success of our strategy ofgrowing our branded sales with Quorn, Branston, Loyd Grossman and Ambrosia allcontinuing to grow strongly. Cost pressures remain an issue but we areconfident the resilience of our business will continue to enable us to offsetthese pressures. Our expectations for the rest of the year remain unchanged." Convenience Foods, Pickles, Sauces and Meat Free Sales for this product group are anticipated to be significantly ahead of thesame period in 2005 due to the acquisitions of Quorn and Cauldron. We aredelighted at the progress of Quorn which has seen double digit sales growth inthe first half, driven by increased advertising and the launch of new products. After adjusting for the disposal of the Jonker Fris business, like-for-likesales are anticipated to be broadly in line with sales in the first half of 2005of £168m. The sales pattern remains as in 2005 with the growth of Branston andLoyd Grossman offset by lower sales of our smaller brands and own labelconvenience foods. Branston Baked Beans have consolidated their market share and we are encouragedby continuing increases in household penetration and distribution ahead offurther TV advertising. Spreads, Desserts & Beverages Sales for this product group are anticipated to be strongly ahead of the salesof £132m for the first half of 2005. We are pleased by the strong growth ofAmbrosia, which has been driven by the launch of new products and growth ofsnacking formats, and new own label contracts. Fresh Produce As we indicated at the time of our AGM announcement, sales at our Fresh Producedivision have stabilised and profitability has improved versus the second halfof last year. In addition, we are pleased to be able to report that our insurance claim inrespect of the fire at our Bury St Edmunds factory has now been fully settled. Interim results for the six months ended 1 July 2006 will be announced on 5September 2006. We will host a presentation to analysts at 9am at ABN AMRO, 250Bishopsgate, London, EC2M 5AA. Comparative segmental analysis for the first and second halves of 2005, restatedto reflect the disposal of our tea and Jonker Fris businesses, have been placedon our website. Enquiries: Paul Thomas, Finance DirectorGwyn Tyley, Investor Relations ManagerPremier Foods plc Tel: 01727 815 850 Michael BerkeleySara BatchelorJustin GriffithsCitigate Dewe Rogerson Tel: 020 7638 9571 Notes to Editors Premier Foods plc is a leading UK manufacturer and marketer of grocery products.Premier manufactures and markets grocery products for the retail grocery andout of home channels in two principal product segments: • Convenience Foods, Pickles, Sauces and Meat Free; and • Spreads, Desserts and Beverages. Premier also operates a Fresh Produce packing and marketing business in theUnited Kingdom, supplying the retail grocery, out of home and food manufacturingchannels. Premier's branded products include Quorn and Cauldron meat alternatives,Ambrosia custard and milk puddings, Bird's and Angel Delight desserts, Branstonpickles, baked beans and pasta, Hartley's preserves and desserts, Gale's honeyand lemon curd, Crosse & Blackwell convenience foods, Sun-Pat peanut butter,Sarsons vinegar, Haywards pickles, Smash instant mashed potato, Marvel powderedmilk creamer and Waistline salad dressings, soups and cooking sauces. Inaddition, the Company produces Loyd Grossman cooking sauces and soups underlicence. Premier also produces a range of retailer brand products, principallyfor the major multiple retailers. Premier's current market capitalisation is £778 million (at market close on 5July 2006). This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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