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(Alliance News) - Premier Foods PLC on Tuesday said sales were higher in its third financial quarter, with particular growth in Branded sales while Non-Branded sales declined.
Shares in Premier Foods were down 4.6% at 103.00 pence in London in morning trading.
The Mr Kipling cake brand owner said total sales for the 13 weeks ended December 26 were up 9.0% at GBP285.8 million from GBP262.2 million a year before. This included a 12% increase in Branded sales to GP231.5 million but a 2.7% drop in Non-Branded sales to GBP54.3 million.
Within its Grocery business, total sales fell 13% to GBP204.4 million, with 15% Branded growth to GBP176.5 million and 2.4% Non-Branded growth to GBP27.7 million.
In Sweet Treats, total sales were 0.6% higher at GBP81.6 million from GBP81.1 million, with 5.0% Branded growth to GBP55.0 million but a 7.5% drop in Non-Branded sales to GBP26.6 million. This drop resulted from "the exit of a low-margin seasonal contract".
For its 2021 financial year as a whole, Premier Foods now expects to post a trading profit in the GBP145 million to GBP150 million range, up as much as 13% from GBP132.6 million in financial 2020.
Premier Foods predicted its ratio of net debt to annual earnings before interest, tax, depreciation and amortisation will fall below 2.0 times from 2.7 times in financial 2020.
Premier said five of its major brands received advertising investment over the Christmas period, and it intends to invest further in the fourth quarter.
Chief Executive Alex Whitehouse said: "We continue to deploy our branded growth model strategy, launching a series of new products in the quarter such as Sharwood's low sugar stir fry sauces and supporting five of our major brands with TV advertising. Together with excellent execution both instore and online, we continue to take market share in volume and value terms. Online sales were up 90% in the quarter, ahead of the broader channel and we saw higher household penetration for brands such as Bisto, Oxo and Paxo, as more meals were eaten at home this Christmas.
"Looking to the remainder of the year, out of home eating is likely to remain heavily restricted and we therefore expect to see continued high levels of consumer demand for our products."
By Anna Farley; annafarley@alliancenews.com
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