Premier Foods Shows Resilience
UK food manufacturer Premier Foods has reported a 5.3% decline in turnover to £788.5 million for 2014 as branded sales fell 4.8% by to £703 million and non-branded by 9% to £85.5 million. Trading profit dropped by 6.1% to £131 million. Adjusted profit before tax declined by £4.0 million in the year to £77.1 million as the trading profit performance was partly offset by a reduced net regular interest charge of £53.9 million.
However, while 2014 was a challenging period for the company there are signs of improvement in what remains a difficult trading environment.
Gavin Darby, chief executive of Premier Foods, comments: “I am pleased with the improved branded sales trends in the fourth Quarter, and particularly our key December trading period, in what continue to be challenging market conditions. The trend in branded sales improved for the second consecutive quarter, our market share in December was the highest it’s been for the last four years and we are encouraged by positive results from areas of the business in which we invested.”
For example Premier Foods’ Mr Kipling brand delivered a particularly strong performance following its re-launch in the second half of 2014.
Gavin Darby continues: “Over the year as a whole, we achieved a great deal to set the company up for future growth. This included a major capital restructuring to diversify and secure our sources of funding, a new organisation structure to improve our focus and agility and a further reduction in cost and complexity to help fund our investment in marketing, new products and organisational capabilities. We also delivered trading profit and net debt for the year in line with current market expectations.”
Looking ahead, he believes that Premier Foods enters 2015 in a stronger position. “We will continue to invest behind our innovation, marketing and category based strategies and work closely with our customers to deliver category growth,” he says. “At the same time the business will retain a tight focus on costs, trading profit and organic de-leveraging, with net debt expected to reduce significantly in 2015. We believe this balanced approach is central to the creation of future value.”
