REG - Premier Foods plc Premier Foods Fin - Q3 Trading Update

Premier FoodsAnnouncement

21/01/2025 07:00

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RNS Number : 0327U  Premier Foods plc  21 January 2025

 

21 January 2025

Premier Foods plc (the "Group" or the "Company")

 

 Branded revenue +4.5%, Full Year Trading profit now at upper end of
 expectations(5)

Premier Foods today provides its Quarter 3 trading update for the thirteen
weeks ended 28 December 2024

 
 ·         Q3 Group sales up 3.1%(3) versus prior year; Q3 Branded sales up 4.6%(3)
 ·         Grocery Branded sales up 3.5%(3), Sweet Treats Branded sales up 8.9%
 ·         Continued volume led growth; Branded volumes up 7%
 ·         Further value and volume market share gains
 ·         Strategic progress continues in all International target regions, total sales
           up 29%(3)
 ·         New Categories sales up 38%, led by Ambrosia porridge pots
 ·         The acquired brands The Spice Tailor and FUEL10K both delivered double-digit
           revenue growth
 ·         Now guiding for Trading profit to the upper end of FY24/25 expectations(5)

 

Note: Headline results presented for the quarter exclude Charnwood and
Knighton Foods

 Alex Whitehouse, Chief Executive Officer

"We are pleased to report another very good quarter of volume led branded
revenue growth, accompanied by further market share gains, as our branded
growth model continues to deliver well for us. Our Sweet Treats business had a
particularly strong Christmas with branded sales up 8.9%; Mr Kipling sold 20%
more mince pies this year, delivering its biggest ever quarter. Earlier this
year, we said that consumers are starting to trade up and treat themselves
more. This has continued over Christmas with our premium ranges such as
Ambrosia Deluxe desserts, Bisto Best gravy and Mr Kipling Signature Brownie
Bites performing strongly and we more than doubled the sales of our Mr Kipling
Signature mince pies."

 

"Our acquired brands, The Spice Tailor and FUEL10K, both delivered double
digit sales growth, as we leverage our product innovation capabilities and
commercial relationships to unlock their potential. Ambrosia porridge pots and
Cape Herb & Spice were standout performers of the 38% growth in new
categories in the quarter, while all our target overseas regions delivered
further strong progress as International sales increased 29%(3)."

 

"Having delivered very good volume led, branded revenue growth in our key
third quarter, we're now guiding Trading profit to the upper end of
expectations for this financial year. As we look to the rest of FY24/25 and to
the medium term, we expect to deliver further progress as we continue to
execute against our five pillar growth strategy."

 Trading update

Grocery

Grocery volumes increased again in Q3, with overall sales(3) up 2.2%, Branded
revenue up 3.5% and Non-branded (9.3%) lower. The premium Ambrosia Deluxe and
Bisto Best ranges performed well as consumers traded up over the Christmas
period and Loyd Grossman cooking sauces delivered sales growth from new
product ranges such as Tomato & Mascarpone sauce and Pesto. Nissin again
grew strongly in the quarter, due to both the existing core ranges and
reflecting the recently added Demae Ramen range. The Group's acquired brands
grew double-digit; The Spice Tailor increased sales helped by the launch of
East Asian sauce kits while FUEL10K launched Multigrain flakes in the period,
adding to the strongly performing Granola range. Sales from new categories
grew 38% in the quarter; Ambrosia Porridge pots again increased retailer
distribution and Cape Herb & Spice delivered particularly strong progress
due to further retailer distribution wins and range expansion. Non-branded
sales declined largely due to the exit of some lower margin contracts.

 

Sweet Treats

Sweet Treats reported strong volume led branded revenue growth of 8.9% in the
quarter with both Mr Kipling and Cadbury contributing to this progress,
growing faster than the market. Mr Kipling Signature mince pies and Brownie
Bites more than doubled sales in the period, as consumers continue to trade up
to premium options. Cadbury cake delivered good sales progress across both its
core and seasonal ranges and the Group recently extended the licence it holds
with Mondelēz Europe GmbH to manufacture and sell Cadbury cake and ambient
desserts through to 2028. Non-branded Sweet Treats sales were in line with the
same period a year ago.

 

International

The Group's overseas businesses enjoyed another quarter of progress with sales
up 29%(3) and double-digit growth in all target regions. Mr Kipling cake was
again the major driver of growth in Australia, as the core portfolio of slices
was supported by the launch of more products such as new Bakewell Tarts
flavours, while the recently launched Paxo Gravy also performed well in the
quarter as the Group expands its category presence. In North America, The
Spice Tailor grew strongly in Canada as the range establishes its position in
market, increasing retailer distribution points and supported by Diwali
seasonal activity. Early sales of The Spice Tailor in the US in the quarter
were encouraging. Sales in EMEA increased as Sharwood's continued to build
distribution in Germany, Belgium, Spain and Portugal.

 

 Outlook

 

With a third quarter of very good volume led branded revenue growth and
further market share gains, the Group is now guiding Trading profit to be at
the upper end of expectations(5) for this financial year. Looking further
ahead, the Company expects to deliver further progress against its growth
strategy, with sales trends to be more balanced between volume and price.

 ~ 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 13 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 (mailto:Investor.relations@premier) foods.co.uk

 

Media enquiries:

Lisa Kavanagh, Director of Communications & Public
Affairs

 

 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, 21 January 2025, 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
(http://www.premierfoods.co.uk/investors/results-centre)

 

 Telephone number:                                0800 358 1035 (UK toll free)
                                                  +44 20 3936 2999 (standard international access)
                                                  Access code: 889246

 

 - 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 UK Listing Rules, the
Disclosure Guidance and Transparency Rules, the rules of the 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 (£m)   FY24/25      FY23/24    Change vs 1 year ago    Change at constant currency
 Grocery
 Branded         232.4        225.0      3.3%                    3.5%
 Non-branded     22.3         24.6       (9.3%)                  (9.2%)
 Total           254.7        249.6      2.0%                    2.2%

 Sweet Treats
 Branded         66.5         61.1       8.9%                    8.9%
 Non-branded     38.9         38.9       0.0%                    0.0%
 Total           105.4        100.0      5.5%                    5.5%

 Group
 Branded         298.9        286.1      4.5%                    4.6%
 Non-branded     61.2         63.5       (3.6%)                  (3.6%)
 Total           360.1        349.6      3.0%                    3.1%

 

 Q3 YTD Sales (£m)   FY24/25      FY23/24    Change vs 1 year ago    Change at constant currency
 Grocery
 Branded             571.5        541.9      5.5%                    5.6%
 Non-branded         57.3         62.5       (8.3%)                  (8.2%)
 Total               628.8        604.4      4.0%                    4.2%

 Sweet Treats
 Branded             172.1        160.7      7.2%                    7.2%
 Non-branded         57.9         61.2       (5.5%)                  (5.5%)
 Total               230.0        221.9      3.7%                    3.7%

 Group
 Branded             743.6        702.6      5.8%                    5.9%
 Non-branded         115.2        123.7      (6.9%)                  (6.9%)
 Total               858.8        826.3      3.9%                    4.0%

 

 1.          Sales data is for the thirteen weeks to 28 December 2024 and the comparative
             period, the thirteen weeks ended 30 December 2023. Headline results in the
             statement are stated excluding Charnwood and Knighton Foods.
 2.          Market share data sourced from IRI, 12 weeks ended 28 December 2024
 3.          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
 5.          Company compiled analyst forecasts for FY24/25 Trading profit range from
             £180.1m to £186.4m, with a mean of £183.5m, and comprise a total of 8
             forecasts

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