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RNS Number : 0440T
Premier Foods plc
20 July 2022
20 July 2022
Premier Foods plc (the "Company" or the "Group")
Strong Quarter 1, firmly on track to deliver full year expectations
Premier Foods today provides its Quarter 1 trading update for
the thirteen weeks ended 2 July 2022
-- Q1 Group sales up 6.0% versus prior year, Branded sales up 4.2%
-- Continued market share(2,3) gains both instore and online
-- International sales up 12%(4)
-- Firmly on track to deliver FY22/23 expectations
Alex Whitehouse, Chief Executive Officer
"We've made a strong start to this financial year, growing sales
by 6% in the quarter and again increasing market share both instore
and online, as we continue to apply the elements of our branded
growth model. Our recently launched new products include a
healthier range of Mr Kipling Deliciously Good cakes and authentic
East Asian Sharwood's cooking sauces while Mr Kipling benefitted
from a new TV advertising campaign in the quarter. Sales overseas
increased by 12% due to a particularly strong cake performance in
Australia, where Mr Kipling delivered its highest ever market
share."
"We have made good progress in recovering our input cost
inflation through a range of measures, including cost efficiencies
and pricing, and we continue to monitor the situation closely.
Consumers are increasingly looking to cook tasty affordable meals
at home; this fits well with our broad portfolio of brands and was
illustrated by the strong performance of Batchelors and Nissin in
the quarter. With this positive trading momentum behind us, we
remain firmly on track to deliver our expectations for the
year."
Trading update
================
Grocery
Grocery sales increased by 6.3% in the quarter, with branded
sales 4.5% ahead of the prior year. Batchelors and Nissin performed
particularly well, with good value meal solutions proving
increasingly popular as household budgets become ever stretched.
All brands benefitted from price recovery in the quarter, volumes
were slightly lower, in part due to tougher comparatives reflecting
pandemic restrictions in the prior year. Non-branded growth of
17.1% was due to strong recovery in out of home sales compared to
the prior year and pricing benefit in retailer branded product
categories.
Sweet Treats
Sales in Sweet Treats increased by 5.1%, with branded sales up
3.3% and non-branded sales 26.8% higher than last year. Cadbury
cake enjoyed a strong quarter, demonstrating resilient volumes and
Mr Kipling sales were higher despite timing changes to promotional
activity. The healthier range of non-HFSS(5) Mr Kipling Deliciously
Good cakes were launched in the period and has been very well
received by consumers. Non branded sales growth was due to contract
gains in pies and tarts and pricing benefits.
International
The overseas business continued its positive momentum, with
sales up 12%(4) compared to last year. Australia delivered a very
strong performance, with Mr Kipling recording its highest ever
market share. In Canada and Europe, Sharwood's has successfully
increased distribution in major national retailers, with benefits
expected to build through the year, while in Ireland, sales of
Nissin noodles delivered strong growth as we have seen in the
UK.
Outlook
========
Trading so far this year has been in line with the Board's
expectations, with the Group delivering strong sales growth and
further market share gains. As expected, good progress has been
made in recovering industry wide input cost inflation through a
range of measures, including cost efficiency and pricing action and
the Group continues to monitor the situation closely. The Group's
expectations for FY22/23 remain unchanged and in the medium term,
it expects to continue to realise further shareholder value through
the ongoing delivery of its five pillar growth strategy.
Ends
As one of the UK's largest food businesses, we're passionate
about food and believe each and every day we have the opportunity
to enrich life for everyone. Premier Foods employs over 4,000
people operating from 15 sites across the country, supplying a
range of retail, wholesale, foodservice and other customers with
our iconic brands which feature in millions of homes every day.
Through some of the nation's best-loved brands, including
Ambrosia, Batchelors, Bisto , Loyd Grossman, Mr. Kipling, Oxo and
Sharwood's, we're creating great tasting products that contribute
to healthy and balanced diets, while committing to nurturing our
people and our local communities, and going further in the pursuit
of a healthier planet, in line with our Purpose of 'Enriching Life
Through Food'.
Contacts:
Institutional investors and analysts:
Duncan Leggett, Chief Financial Officer
Richard Godden, Director of Investor Relations
Investor.relations@premierfoods.co.uk
Media enquiries:
Lisa Kavanagh, Director of Communications
Headland
Ed Young +44 (0) 7884 666830
Jack Gault +44 (0) 7799 089357
Conference call
================
A conference call for investors and analysts hosted by Alex
Whitehouse, CEO and Duncan Leggett, CFO, will take place today, 20
July 2022, at 9.00am, details of which are outlined below. A replay
of the conference call will be available on the Company's website
later in the day:
www.premierfoods.co.uk/investors/results-centre
Telephone number: 0800 640 6441 (UK toll free)
+44 20 3936 2999 (standard international access)
Conference ID: 871572
- Ends -
Notes to editors:
Q1 Sales (GBPm) FY22/23 FY21/22 Change vs 1
year ago
Grocery
Branded 119.3 114.1 4.5%
Non-branded 22.3 19.1 17.1%
------- ------- -----------
Total 141.6 133.2 6.3%
Sweet Treats
Branded 50.3 48.7 3.3%
Non-branded 5.1 4.0 26.8%
------- ------- -----------
Total 55.4 52.7 5.1%
Group
Branded 169.6 162.8 4.2%
Non-branded 27.4 23.1 18.8%
------- ------- -----------
Total 197.0 185.9 6.0%
------- ------- -----------
1. Sales data is for the thirteen weeks to 2 July 2022 and 3 July 2021.
2. Market share data sourced from IRI, 13 weeks ended 2 July 2022.
3. Online channel data sourced from Kantar Worldpanel, 12 weeks ended 12 June 2022
4. International sales stated on a constant currency basis
5. Non-HFSS: Food or drinks not high in fat, salt or sugar
6. All financial data detailed above is unaudited and has not
been subject to review by the Company's auditors.
This announcement may contain "forward-looking statements" that
are based on estimates and assumptions and are subject to risks and
uncertainties. Forward-looking statements are all statements other
than statements of historical fact or statements in the present
tense, and can be identified by words such as "targets", "aims",
"aspires", "assumes", "believes", "estimates", "anticipates",
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"will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. Any
forward-looking statements in this announcement are made based upon
Premier Foods' estimates, expectations and beliefs concerning
future events affecting the Group and subject to a number of known
and unknown risks and uncertainties. Such forward-looking
statements are based on numerous assumptions regarding the Premier
Foods Group's present and future business strategies and the
environment in which it will operate, which may prove not to be
accurate. Premier Foods cautions that these forward-looking
statements are not guarantees and that actual results could differ
materially from those expressed or implied in these forward-looking
statements. Undue reliance should, therefore, not be placed on such
forward-looking statements. Any forward-looking statements
contained in this announcement apply only as at the date of this
announcement and are not intended to give any assurance as to
future results. Premier Foods will update this announcement as
required by applicable law, including the Prospectus Rules, the
Listing Rules, the Disclosure and Transparency Rules, London Stock
Exchange and any other applicable law or regulations, but otherwise
expressly disclaims any obligation or undertaking to update or
revise any forward-looking statement, whether as a result of new
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END
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