RNS / High-lights19 Jan 2021 11:20
What more can you want, it all looks great for a change.
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. With more brand investment to come, we now expect Trading profit to be in the range of £145-£150m this year and Net debt/EBITDA5 to fall below 2.0x by the year end."
The vast majority of the Group's Grocery brands continued to see substantial growth with more meals eaten at home by consumers, reflecting further pandemic lockdown restrictions in the UK. Sales of Sharwood's cooking sauces grew by 40% in Q3 due to strong commercial plans and new product launches while Bisto and Batchelors both reported healthy double digit sales growth, supported by increased investment in television advertising. Ambrosia also delivered increased sales in the quarter, benefitting from a new TV advertisement campaign.
Mr. Kipling is on track for another record year, with UK sales up 7% in the quarter, alongside further market share gains. Mr. Kipling has continued to benefit from the launch of new product ranges and an extended period of marketing investment. The Group has also just launched Mr Kipling 30% less sugar Viennese Whirls. Cadbury cake also grew market share3 and saw sales increase both in the UK and overseas.
The Group today announces that following strong cash generation in the third quarter, it will be redeeming a further £40m part redemption of its Floating Rate Notes due July 20227. This follows previous part redemptions earlier this year which amounted to £120m. This redemption is due to take place on 16 February 2021, will reduce the amount outstanding on the Notes7 to £50m and save the Group a further £2m per annum in interest costs. Following this redemption, an aggregate of £160m of the Notes will have been repaid during FY20/21, generating total pro forma interest savings of £8m per annum.
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