"While Power Brands sales for the second quarter are anticipated to be negative and below the company's expectations due to subdued grocery markets, profit expectations for the twelve months to 31 December 2014 remain unchanged," the company said in a statement.
Currently analysts expect Premier Foods to post pretax profit of 82 million pounds ($138 million) for 2014 according to Thomson Reuters
I can't help but think that despite PFD having some iconic brands in its portfolio, the company is facing a perfect storm. A number of the Brands are in declining markets (which had to be one of the reasons for selling off Robertson's). The weather is constantly blamed for poor sales performance (and the weather ain't renowned for its accommodating stance). The only retailers doing well right now are the discounters such as Lidl and Aldi who frown on selling renowned brands and love lesser-known brands or own-label stuff (that Premier don't want to make). PFD's portfolio is still too focussed on cold-weather products - curries, gravy, stuffing, cooking sauces etc. It needs more year-round products to balance trading performance - more NPD and, dare I say it when we're all still reeling from the acquisition spree that almost killed the company off, perhaps to buy in a complementary product range or two.
I'm sure I tipped Amara and Mwana 2/3 months back on this blog. Laughed at by all. Both are now at least 30/40% up! I also predicted 30p for PFD i.e. the old 3p...I'm still waiting before I buy back in...
I bow to your inside knowledge but perhaps your too close. All organisations seem to be rubbish when viewed internally but the market's view is different. Pfd is getting to grips with long term problems and turning it into a 'normal'company rather than the zombie Iit has been for years...omlette and eggs spring to mind. Keep the faith, pfd will rise again.
I used to work for Premier - retired now. I guess there is some good news in there, in that they have now found something useful to do with Knighton. It was also a bit of a white elephant in my day. If they can consolidate all the meaningful production into Ashford, presumably it will lead to the eventual sale of Knighton. I think it was pretty pathetic to try and hide a sales/profit warning in the middle of another announcement.
As someone who woks for PFD, I can only say volumes have dropped significantly in the last 6 months and there is a big focus on cutting cost. Transport structure has changed and staffing levels have been particularly hard hit at both shop floor and management levels. It doesn't feel good to be honest, the only saving grace is that although we have all the problems caused by inexperienced staff and lack of resource, we are able to batten down the hatches when volumes are low. The question is when things pick up will we have the infrastructure and experience to meet customer service expectations?
I can only imagine 2nd quarter results will not make pretty reading from a sales perspective. I personally hope the buyers show their hand again at 50p because I'm pretty certain we will see it again soon. Expect a bumpy ride and be prepared to hold long term.
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