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(Alliance News) - Premier Foods PLC on Friday said sales in its financial first quarter were down year-on-year, but it still expects to achieve adjusted pretax profit for the year as a whole that is at the top end of expectations.
Sales for the thirteen weeks ended July 3 were down 13% year-on-year, however, sales were up 6.3% compared to the same period in 2019.
The St Albans, England-based food manufacturer said the fall in sales from last year was expected, following the exceptional circumstances of the first lockdown. However, the increase from 2019 is at the top end of the company's expectations.
Branded sales were down 14% from a year ago but up 9.3% from two years earlier. This demonstrates that the group's brand building model is delivering consistent growth, Premier Foods asserted. Non-branded sales were down 8.0% from 2020 and down 11% from 2019.
Sweet Treats branded sales increased by 3.2% versus a year ago and 3.7% from 2019, as Mr Kipling continued to grow strongly, building on its record sales in financial 2021, which ended on April 3, with sales up 7.5% in the quarter. This reflected further TV advertising, a strong performance from healthier product ranges such as 30% less sugar Angel Slices and new product launches under the premium Signature collection.
Branded Grocery sales were down 20% from 2020 but up 12% from 2019.
The International business saw further progress with sales up 2% from a year before, as Premier Foods continued to benefit from its revised strategy and building on financial year 2021 when sales in the full year grew by 23%.
Premier Foods now expects adjusted pretax profit for financial year 2022 to be at the top end of the group's expectations. Adjusted pretax profit was GBP117.9 million in financial 2021. The company noted that its recent GBP330 million debt note issue at 3.5% interest will reduce financing costs going forward.
"We have made a very encouraging start to the year, with quarter 1 sales at the top end of our expectations, as our brands again benefited from the introduction of new products and continued marketing investment," said Chief Executive Officer Alex Whitehouse.
Shares in Premier Foods were up 3.1% at 108.23 pence each in London on Friday morning.
By Amrit Sahota; newsroom@alliancenews.com
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