Premier Foods: Trading Profit Up 50%, Full Year Expectations Raised

23 Jul 2013 --- Premier Foods announces its Half Year results for 2013, demonstrating continued strong momentum against its strategies.

Gavin Darby, Chief Executive Officer, said:

“A 50% increase in Trading profit is a very encouraging result given the highly competitive environment. This shows that our turnaround strategy is delivering at the bottom line.  We have now grown sales in our Grocery Power Brands for six consecutive quarters as we continue to build partnerships with our customers, deepen our understanding of consumers and invest more effectively in supporting our brands.

“We have already completed the actions to deliver the promised £20m of overhead cost savings for 2013 and continue to keep a tight control over costs. The restructuring of our bread and milling business is ahead of plan and we are taking the decisions necessary to create a more sustainable platform for this business.

“The second half will see further plans to grow our Power Brands, in addition to a new £10m of cost savings that we have now identified from our efforts to reduce complexity.  As a result, we now expect Full Year Trading Profit to be around the top of market expectations.

“Looking further forward, we will continue to drive profitable top-line growth by focusing on growing our categories supported by ongoing cost savings from reducing complexity. At the right time, we will address our capital structure – from a position of growing strength given the delivery of our turnaround plan and the performance of our Power Brands.  I am excited by the potential offered by Premier Foods in the longer term.”