Premier Foods mulls turnaround options ahead of annual vote (updated)
18/07/2018 08:25
(Adds details on sales, background)
By Martinne Geller and Sangameswaran S
LONDON, July 18 (Reuters) - Britain's Premier Foods PFD.L
said on Wednesday it was identifying opportunities to speed up
the company's turnaround as it posted a rise in quarterly sales
ahead of a crucial annual meeting that will decide the fate of
under-fire CEO Gavin Darby.
Premier had held "exploratory discussions" with Japan's
Nissin Foods 2897.T about selling its top-performing
Batchelors soups brand but nothing materialized, Chairman Keith
Hamill told reporters late Tuesday.
Top shareholders Oasis Management and Paulson & Co have
repeatedly criticized the Mr Kipling cakes maker for its lagging
share price and also blamed Darby for a failed takeover bid by
U.S. spice maker McCormick & Company Inc MKC.N two years ago.
Oasis recently called on the company to divest the
Batchelors brand to improve its financial outlook and create
funds for investment.
Hamill said the board looked at the possibility and Oasis
was "highly enthusiastic" about it, but such a move was not
acted upon.
Premier had earlier rejected the call, saying it would not
sell one of its "jewels". L8N1UD6FO
The company said in its trading update on Wednesday that the
Batchelors brand continued to "display excellent growth" and
helped boost its quarterly sales 1.7 percent.
"Our biggest brand, Mr Kipling, led the charge with an
excellent performance on the back of its recent brand relaunch
with sales up 14 percent in the UK," Darby said.
The company has been riding on the success of sales outside
its home market and partnerships with its largest shareholder
and Japanese noodle-maker Nissin and candy-maker Mondelez.
Sales at its international business rose 4 percent in the
quarter and nearly 20 percent over the last two quarters, the
company said.
"Q1 has delivered a further quarter of growth and the best
sustained sequence since 2012," Jefferies analysts said in a
note.
Premier made no change to its full-year expectations and
said it expects to make progress in the second half of the year.
(Reporting by Martinne Geller
Editing by Leslie Adler)
((martinne.geller@thomsonreuters.com; +44 (0) 2075420797;
Reuters Messaging: martinne.geller.reuters.com@reuters.net))