TIDMPFD TIDMIRSH
RNS Number : 5256A
Premier Foods plc
23 January 2024
23 January 2024
Premier Foods plc (the "Group" or the "Company")
Biggest ever Christmas, significant market share gains(1,2)
Premier Foods today provides its Quarter 3 trading update for
the thirteen weeks ended 30 December 2023
-- Q3 Group sales up 14.4% versus prior year; Q3 Branded sales
up 12.7%
-- Grocery sales up 11.9%, Sweet Treats sales up 21.3%
-- Total market share(2) increased by 121 basis points versus
prior year
-- International sales up 11%(3) , strong performances across
strategic markets
-- Sales from New Categories up 108% versus prior year
-- Strong The Spice Tailor sales in both UK and International;
FUEL10K is off to a good start
-- Well on track to deliver on previously upgraded expectations
for full year
Note: Headline results presented for the quarter exclude
Knighton Foods
Alex Whitehouse, Chief Executive Officer
"We delivered a very strong performance in our important third
quarter with double-digit sales growth across the Group, underlined
by particularly strong market share gains of over 120 basis points.
Our International business had another very good quarter, growing
sales by 11%, delivering progress in our strategic markets. Sales
in new categories more than doubled, with Ambrosia Porridge pots
and Mr Kipling and Angel Delight Ice-cream both standout
performers. Meanwhile, The Spice Tailor continued to grow strongly,
achieving distribution gains in target markets, while FUEL10K
integration into the Group is progressing in line with plan."
"Festive favourites such as Bisto, Oxo and Paxo contributed to
our biggest ever Christmas, as consumers enjoyed not only the core
ranges but new products such as Bisto Best meat free gravy and Paxo
Chicken and Bacon stuffing. We sold nearly 190 million mince pies,
4 million more than last year, helped by the new Mr Kipling 'Best
Ever' Signature mince pies."
"The lower promotional price points we introduced in the third
quarter have positively impacted performance while also helping
consumer budgets go further. These lower prices will be extended to
additional products such as Loyd Grossman cooking sauces and Mr
Kipling Bakewell slices in quarter four."
"With another strong period of trading behind us, and great
plans for the coming months, we are well on track to deliver on
profit expectations for this year."
Trading update
================
Grocery
Grocery sales increased by 11.9% in the quarter, with strong
performances across the portfolio as the Group again substantially
outperformed its categories, delivering over 110 basis points of
share growth. Brands in the Flavourings & Seasonings category
enjoyed a strong festive season; Bisto, Oxo and Paxo delivered
significant growth in both core and new product ranges such as
Bisto Best meat free gravy, Oxo Stock Pots, and Paxo Chicken &
Bacon stuffing. Sales from new categories more than doubled in the
quarter; Ambrosia Porridge pots benefitted from the launch of the
new Apple & Blueberry flavour, while Mr Kipling and Angel
Delight ice-cream hit top quartile run rates following listings in
two major retail customers. Non-branded sales were 14.5% higher
reflecting price increases in retailer branded product categories
compared to the same quarter last year.
Sweet Treats
Branded Sweet Treats returned to growth with sales up 17.1%,
largely due to significantly higher sales of Cadbury cake compared
to last year. This strong performance reflected growth in core
Cadbury Mini Rolls and cake bars and a softer comparative due to
unscheduled maintenance of a plant line last year. The Group grew
well ahead of the cake category in the quarter, gaining over 120
basis points of share and sold 4 million more Mince Pies than last
year, including the new Mr Kipling 'Best Ever' Signature mince
pies. Growth of 28.7% in Non-branded sales was due to contract
gains in pies and tarts and pricing benefits.
International
International continues to progress strongly, sales grew another
11%(3) in the period. In Ireland, growth was broad based, with all
Grocery brands significantly up on the prior year. The Spice Tailor
and Sharwood's were major drivers of sales growth in Australia,
reflecting strong instore execution. In the USA, Sharwood's cooking
sauces grew strongly, benefitting from increased distribution
gains, while Mr Kipling cake is now listed in nearly 2,000
stores.
Mr Kipling has also achieved new listings in Canada, which will
take the combined number of listings across North America close to
3,000 stores. Following recent distribution gains in New Zealand,
Belgium and Switzerland, The Spice Tailor will also soon be
available in the USA and France, increasing the brand's presence to
10 countries.
Outlook
========
The Group continues to trade strongly, delivering further
progress against its strategy, evidenced by another quarter of
double-digit sales growth and market share gains. Now into the
final quarter of its financial year, the Company is well on track
to deliver against its previously raised profit expectations.
Looking further ahead, a full resolution of its pensions schemes is
expected within three years, which will open up a range of value
enhancing opportunities to further accelerate shareholder
value.
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@premier foods.co.uk
Media enquiries:
Sarah Henderson, 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, 23
January 2024, 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 358 1035 (UK toll free)
+44 20 3936 2999 (standard international
access)
Access code: 024598
- Ends -
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",
"expects", "intends", "hopes", "may", "would", "should", "could",
"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
information, future developments or otherwise.
Notes to editors:
Q3 Sales FY23/24 FY22/23 Change vs
(GBPm) 1 year ago
Grocery
Branded 225.0 201.6 11.6%
Non-branded 27.7 24.2 14.5%
------- ------- -----------
Total 252.7 225.8 11.9%
Sweet Treats
Branded 61.1 52.2 17.1%
Non-branded 38.9 30.2 28.7%
------- ------- -----------
Total 100.0 82.4 21.3%
Group
Branded 286.1 253.8 12.7%
Non-branded 66.6 54.4 22.4%
------- ------- -----------
Total 352.7 308.2 14.4%
------- ------- -----------
Q3 YTD Sales FY23/24 FY22/23 Change vs
(GBPm) 1 year ago
Grocery
Branded 541.9 458.8 18.1%
Non-branded 73.3 57.6 27.2%
------- ------- -----------
Total 615.2 516.4 19.1%
Sweet Treats
Branded 160.7 154.5 4.0%
Non-branded 61.2 43.7 40.1%
------- ------- -----------
Total 221.9 198.2 12.0%
Group
Branded 702.6 613.3 14.6%
Non-branded 134.5 101.3 32.8%
------- ------- -----------
Total 837.1 714.7 17.1%
------- ------- -----------
1. Sales data is for the thirteen weeks to 30 December 2023 and
the comparative period, the thirteen weeks ended 31 December
2022. Headline results in the statement are stated excluding
Knighton Foods. Knighton Foods sales in the Quarter 3 were
GBP3.6m (2022/23: GBP9.8m). Group sales are the largest in
this equivalent quarter since the disposal of the Hovis bread
business in 2014.
2. Market share data sourced from IRI, 12 weeks ended 30 December
2023
3. International sales stated on a constant currency basis
4. All financial data detailed above is unaudited and has not
been subject to review by the Company's auditors
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END
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