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Premier Foods reports improving sales trend

The UK’s Premier Foods – whose brands include Batchelor’s, Bisto, Paxo and Sharwood’s – has reported its financial results. According to the company, last quarter branded sales were broadly flat, continuing an improving trend, and it saw both volume and value market share gains across its categories. Marketing investment increased over 80% in the last […]

The UK’s Premier Foods – whose brands include Batchelor’s, Bisto, Paxo and Sharwood’s – has reported its financial results. According to the company, last quarter branded sales were broadly flat, continuing an improving trend, and it saw both volume and value market share gains across its categories. Marketing investment increased over 80% in the last six months and is said to be delivering encouraging results. Trading profit  for the 52 weeks to 4 April 2015 was £131.0m, in line with expectations, on revenues of £964.3m.

“For the last quarter, I am pleased to again report an improving sales trend, which has benefitted from a combination of brand investment, exciting new products and strong retail execution,” said Gavin Darby, Chief Executive Officer. “Across our branded portfolio, we have delivered volume and value share gains, while we have driven growth in our cake and flavourings and seasonings categories.”

“Over the last twelve months, six of our major brands have benefited from TV advertising and we have launched a number of new products to market, with more to come this year. We have also made good progress with our major customers and we now hold significantly more category captaincy roles than we did three years ago.”

“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,” continued Darby. “ 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. The Board is firmly focussed 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 de-leveraging, are well positioned to deliver success.”