Premier Foods posts sales rise but gravy, soup hit by warm UK weather
Premier Foods PLC on Thursday said Mr Kipling birthday tarts performed strongly in its first financial quarter, while gravy, stock and soup proved less than popular amid the recent heatwave in the UK.
St Albans, Hertfordshire-based Premier Foods is a maker of branded and non-branded food, including Homepride cooking sauces and Oxo stock cubes.
Sales edged up 0.2% to £239.7 million in the three months ended June 28 from £239.3 million a year ago.
Grocery sales fell 2.8% to £174.4 million from £179.4 million. The firm noted that Spice Tailor and FUEL10K both ‘grew strongly’, while gravy, stock and soup sales were hurt by hot weather in the UK.
Meanwhile, new categories revenue jumped 38% in the quarter, with Ambrosia Porridge pots ‘significantly’ increasing sales and market share, while Cape Herb & Spice sales climbed sharply as well.
Sweet Treats branded sales were up 11%, with Mr Kipling products such as Signature Brownie Bites and birthday cake tarts contributing to growth. Cadbury cakes were boosted from the launch of new Caramel Mini Rolls.
Premier Foods highlighted that international sales were up 5%, emphasising ‘strong’ in-market performance in Australia.
Looking ahead, Chief Executive Officer Alex Whitehouse said: ‘We expect branded revenue growth to build through the year, as we launch further new products, such as FUEL10K yogurt and granola pots. Our trading profit expectations for the full year are unchanged, underpinned by our proven branded growth model and ongoing cost efficiency programmes.’
Premier Foods shares fell 3.2% to 187.20 pence each on Thursday morning in London.
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