TIDMPFD TIDMIRSH
RNS Number : 9436B
Premier Foods plc
16 January 2018
Premier Foods plc (the "Company" or the "Group")
Quarter 3 Trading Statement for 13 weeks ended 30 December
2017
-- Q3 Group sales up +4.0%; year to date Group sales up +2.6%
-- Q3 International sales(3) growth up +26%
-- Market share gains in 6 of 8 major brands year to date
-- Nissin & Mondelez International strategic partnerships contributing strongly to sales growth
-- Record 220 million mince pies sold in 2017
-- Expectations for progress in the full year remain unchanged
Gavin Darby, Chief Executive Officer:
"We delivered another good quarter of growth, with sales up
+4.0% in Q3 and +2.6% in the first three quarters of the year. Our
International business produced another excellent quarter and our
partnerships with Nissin and Mondelez International continue to
deliver strong performances, demonstrating their strategic benefits
to us. With our leading category positions and commitment to
product innovation, our expectations for progress this year remain
unchanged."
Sales % Q3 Q3 Year to date
change
-------------------------- --------------------------
Grocery Sweet Group Grocery Sweet Group
Treats Treats
-------- -------- ------ -------- -------- ------
Branded 3.4% (7.3%) 0.7% 1.9% (4.2%) 0.3%
Non-branded 13.9% 19.6% 17.0% 9.9% 18.7% 13.6%
-------- -------- ------ -------- -------- ------
Total 4.8% 2.2% 4.0% 3.1% 1.4% 2.6%
-------- -------- ------ -------- -------- ------
Trading update
Group sales in the third quarter were GBP261.4m, an increase of
+4.0% compared to the same quarter a year ago. Branded sales were
+0.7% higher in the quarter, and Non-branded sales grew strongly,
up +17.0%. These results reflect the robust performance of the UK
food market and the benefits of the Group's strategic
partnerships.
In the first three quarters of the financial year, sales grew by
+2.6% and over this period, six of the Group's largest eight brands
grew market share in their respective categories.
Total sales in the Grocery business were 4.8% higher in the
period, with growth in both the Branded and Non-branded parts of
the portfolio. Branded sales were ahead +3.4% and Non-branded sales
increased by +13.9%, the latter mainly due to continued growth from
existing contracts and new business wins notably in Stuffing.
Batchelors delivered its fourth successive quarter of sales
growth, reflecting the continued benefits of the Nissin strategic
partnership. Batchelors Super Noodles in a pot, the convenient
light meal product manufactured by Nissin, has now delivered over
GBP5m sales since its launch last year. Additionally, Soba Noodles
has delivered GBP2m sales since the Group received distribution
rights and the iconic Nissin Cup Noodle product is now also in the
market.
Sales and volumes of Bisto and Oxo both grew in the quarter,
benefitting from media advertising. In Desserts, Angel Delight
continued its strong performance from Q2 into Q3, growing over +30%
following the introduction of the convenient ready to eat pot range
in 2017, while Ambrosia sales were lower. Cooking sauces also
delivered sales growth in the period, with improved trends from
Sharwood's and Homepride in particular.
International sales(3) increased by +26% in the quarter,
reflecting continued strong progress in Australia, the launch of Mr
Kipling and Cadbury cake in New Zealand and a number of new
customer listings for Sharwood's in Europe and the USA.
Sweet Treats sales increased by +2.2% in the period and while
Branded sales were (7.3%) lower than the prior year, further strong
growth was seen in Non-branded sales, which grew +19.6%.
Cadbury cake sales continued to grow strongly in International
markets, but were lower in the UK during Q3, following some short
term capacity constraints. Additionally, Cadbury sales were
impacted by a move to more optimal promotional activity compared to
the comparative period, albeit this follows a good run of growth
over the previous two years. Looking to the fourth quarter, the
Group has just launched new Cadbury 'Heroes' cupcakes, aligned to
the consumer trend of indulgence, which is the first time Cadbury
cake has utilised the 'Heroes' brand. Sales of Mr Kipling cakes
were also lower in the quarter, again following a move to more
optimal promotional activity. In the fourth quarter, a new range of
low sugar Mr Kipling slices have been launched in flavours such as
Smashing Strawberry and Awesome Apple. This new range has 30% less
sugar than other slices at an average of 92 calories per slice.
Non-branded Sweet Treats sales benefitted from increased volumes
of Mince Pies compared to the prior year, contract wins in seasonal
lines and growth in the discounter sector. The Group sold a record
220 million mince pies in 2017; approximately 4 million more than
the prior year.
Cost reduction and efficiency programmes
Cost savings from the Group's SG&A cost reduction programme
are flowing through in both business units as expected, however
overall supply chain costs are running ahead of expectations.
The first stage of the three phase transition to a new
centralised warehousing and distribution logistics operation has
now been completed, despite some initial implementation challenges.
The next two phases of the Group's transformation programme are on
track to be completed during the course of FY18/19, after which the
full benefits are expected to be realised.
Outlook
The Group's expectations for progress in FY17/18 remain
unchanged. Net debt at the year end is expected to be lower than
the prior year. The rate of deleveraging is on track to accelerate
in future years as the Company pursues its target of reducing Net
debt/EBITDA to below 3.0x.
Ends
For further information, please contact:
Investors and analysts:
+44 (0) 1727
Alastair Murray, Chief Financial Officer 815 850
Richard Godden, Director of Investor +44 (0) 1727
Relations 815 850
Media:
Maitland
+44 (0) 20
Sundeep Tucker 7379 5151
+44 (0) 20
Joanna Davidson 7379 5151
Conference call
A conference call for investors and analysts hosted by Gavin
Darby, CEO and Alastair Murray, CFO, will take place today, 16
January 2018, 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 376 7922 (UK toll free)
+44 20 7192 8000 (standard international
access)
Conference ID: 3777308
Notes to editors:
1. All financial data detailed above is unaudited and has not
been subject to review by the Company's auditors.
2. All sales data relates to the 13 weeks to 30 December 2017 or
31 December 2016, the "quarter", as appropriate. Quarter 3 year to
date sales data is for the 39 weeks to 30 December 2017 or 31
December 2016.
3. International sales growth is stated on a constant currency basis.
4. Market share references are sourced from IRI, 23 December 2017.
Certain statements in this management statement are forward
looking statements. By their nature, forward looking statements
involve a number of risks, uncertainties or assumptions that could
cause actual results or events to differ materially from those
expressed or implied by those statements. Forward looking
statements regarding past trends or activities should not be taken
as representation that such trends or activities will continue in
the future. Accordingly, undue reliance should not be placed on
forward looking statements.
A Premier Foods image gallery is available using the following
link:
http://www.premierfoods.co.uk/media/image-gallery
Quarter 3 sales
GBPm 2017/18 2016/17 Change
Grocery
Branded 154.1 149.1 3.4%
Non-branded 26.6 23.4 13.9%
-------- --------- -------
Total 180.7 172.5 4.8%
-------- --------- -------
Sweet Treats
Branded 47.4 51.1 (7.3%)
Non-branded 33.3 27.8 19.6%
-------- --------- -------
Total 80.7 78.9 2.2%
-------- --------- -------
Group
Branded 201.5 200.2 0.7%
Non-branded 59.9 51.2 17.0%
-------- --------- -------
Total 261.4 251.4 4.0%
-------- --------- -------
Quarter 3 sales - year to date
GBPm 2017/18 2016/17 Change
Grocery
Branded 368.8 361.9 1.9%
Non-branded 67.0 60.9 9.9%
-------- --------- -------
Total 435.8 422.8 3.1%
-------- --------- -------
Sweet Treats
Branded 128.1 133.7 (4.2%)
Non-branded 50.9 42.9 18.7%
-------- --------- -------
Total 179.0 176.6 1.4%
-------- --------- -------
Group
Branded 496.9 495.6 0.3%
Non-branded 117.9 103.8 13.6%
-------- --------- -------
Total 614.8 599.4 2.6%
-------- --------- -------
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTLLFVALIIELIT
(END) Dow Jones Newswires
January 16, 2018 02:00 ET (07:00 GMT)
Premier Foods (LSE:PFD)
Historical Stock Chart
From Mar 2024 to Apr 2024
Premier Foods (LSE:PFD)
Historical Stock Chart
From Apr 2023 to Apr 2024