Premier Foods profit gains on Mr Kipling cakes, Nissin noodles boost (updated)
12/11/2019 07:50
(Adds details on outlook, cost savings, background)
Nov 12 (Reuters) - Britain's Premier Foods Plc PFD.L
reported higher first-half adjusted pretax profit on Tuesday,
benefiting from the relaunch of Mr Kipling cakes last year and
strong sales of Nissin noodles.
The Bisto gravy and Oxo cube maker, which shuffled its top
management earlier this year, said adjusted pretax profit rose
5% to 31.7 million pounds ($40.56 million) for the six months
ended Sept. 28.
"Following this encouraging start to the year, with its
marketing investment and exciting innovation programmes, the
Group has increased confidence of building on this momentum to
deliver progress in the full year and beyond," the company said.
The company, which is targeting additional, largely
operational cost savings over the next two years, said it sees
options regarding its future cash deployment.
Premier Foods said Nissin Soba Noodles & Cup Noodles, which
it sells in a partnership with Nissin Foods Holdings 2897.T ,
enjoyed an exceptionally strong growth trajectory with its sales
growing 111%.
The company appointed UK business chief Alex Whitehouse as
the company's new chief executive officer in August, after Gavin
Darby left in January because of shareholder pressure following
a drop in the share price after a takeover attempt by U.S. food
maker McCormick & Co Inc MKC.N fell through three years ago.
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The company also appointed Colin Day from Reckitt Benckiser
RB.L , where he was the chief financial officer, to be its new
chairman, and appointed Duncan Leggett as its finance chief,
filling a leadership void at the group.
Premier Foods on Tuesday announced more executive changes,
with a new chief customer officer, chief marketing officer and
operations director to deliver sharper focus in those areas. It
removed the UK and international managing director roles.
($1 = 0.7815 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Rashmi
Aich)
((tanishaa.nadkar@thomsonreuters.com; Within UK +44 20 7542
1810; Outside UK +91 80 6749 1691; Twitter: @TanishaaNadkar;))