Premier Foods Regulatory News (PFD)

20 July 2022

Premier Foods plc (the "Company" or the "Group")

Premier Foods today provides its Quarter 1 trading update for the thirteen weeks ended 2 July 2022

"We've made a strong start to this financial year, growing sales by 6% in the quarter and again increasing market share both instore and online, as we continue to apply the elements of our branded growth model. Our recently launched new products include a healthier range of Mr Kipling Deliciously Good cakes and authentic East Asian Sharwood's cooking sauces while Mr Kipling benefitted from a new TV advertising campaign in the quarter. Sales overseas increased by 12% due to a particularly strong cake performance in Australia, where Mr Kipling delivered its highest ever market share."

"We have made good progress in recovering our input cost inflation through a range of measures, including cost efficiencies and pricing, and we continue to monitor the situation closely. Consumers are increasingly looking to cook tasty affordable meals at home; this fits well with our broad portfolio of brands and was illustrated by the strong performance of Batchelors and Nissin in the quarter. With this positive trading momentum behind us, we remain firmly on track to deliver our expectations for the year."

Grocery

Grocery sales increased by 6.3% in the quarter, with branded sales 4.5% ahead of the prior year. Batchelors and Nissin performed particularly well, with good value meal solutions proving increasingly popular as household budgets become ever stretched. All brands benefitted from price recovery in the quarter, volumes were slightly lower, in part due to tougher comparatives reflecting pandemic restrictions in the prior year. Non-branded growth of 17.1% was due to strong recovery in out of home sales compared to the prior year and pricing benefit in retailer branded product categories.

Sweet Treats

Sales in Sweet Treats increased by 5.1%, with branded sales up 3.3% and non-branded sales 26.8% higher than last year. Cadbury cake enjoyed a strong quarter, demonstrating resilient volumes and Mr Kipling sales were higher despite timing changes to promotional activity. The healthier range of non-HFSS5 Mr Kipling Deliciously Good cakes were launched in the period and has been very well received by consumers. Non branded sales growth was due to contract gains in pies and tarts and pricing benefits.

International

The overseas business continued its positive momentum, with sales up 12%4 compared to last year. Australia delivered a very strong performance, with Mr Kipling recording its highest ever market share. In Canada and Europe, Sharwood's has successfully increased distribution in major national retailers, with benefits expected to build through the year, while in Ireland, sales of Nissin noodles delivered strong growth as we have seen in the UK.

Trading so far this year has been in line with the Board's expectations, with the Group delivering strong sales growth and further market share gains. As expected, good progress has been made in recovering industry wide input cost inflation through a range of measures, including cost efficiency and pricing action and the Group continues to monitor the situation closely. The Group's expectations for FY22/23 remain unchanged and in the medium term, it expects to continue to realise further shareholder value through the ongoing delivery of its five pillar growth strategy.

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As one of the UK's largest food businesses, we're passionate about food and believe each and every day we have the opportunity to enrich life for everyone. Premier Foods employs over 4,000 people operating from 15 sites across the country, supplying a range of retail, wholesale, foodservice and other customers with our iconic brands which feature in millions of homes every day. 

Through some of the nation's best-loved brands, including Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr. Kipling, Oxo and Sharwood's, we're creating great tasting products that contribute to healthy and balanced diets, while committing to nurturing our people and our local communities, and going further in the pursuit of a healthier planet, in line with our Purpose of 'Enriching Life Through Food'. 

Contacts:

Institutional investors and analysts:

Duncan Leggett, Chief Financial Officer

Richard Godden, Director of Investor Relations

Investor.relations@premierfoods.co.uk

Media enquiries:

Lisa Kavanagh, Director of Communications

Headland

Ed Young +44 (0) 7884 666830

Jack Gault +44 (0) 7799 089357

A conference call for investors and analysts hosted by Alex Whitehouse, CEO and Duncan Leggett, CFO, will take place today, 20 July 2022, at 9.00am, details of which are outlined below. A replay of the conference call will be available on the Company's website later in the day:  www.premierfoods.co.uk/investors/results-centre

Telephone number: 0800 640 6441 (UK toll free)

+44 20 3936 2999 (standard international access)

Conference ID: 871572

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Notes to editors:

1. Sales data is for the thirteen weeks to 2 July 2022 and 3 July 2021.

2. Market share data sourced from IRI, 13 weeks ended 2 July 2022.

3. Online channel data sourced from Kantar Worldpanel, 12 weeks ended 12 June 2022

4. International sales stated on a constant currency basis

5. Non-HFSS: Food or drinks not high in fat, salt or sugar

6. All financial data detailed above is unaudited and has not been subject to review by the Company's auditors.

This announcement may contain "forward-looking statements" that are based on estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements are all statements other than statements of historical fact or statements in the present tense, and can be identified by words such as "targets", "aims", "aspires", "assumes", "believes", "estimates", "anticipates", "expects", "intends", "hopes", "may", "would", "should", "could", "will", "plans", "predicts" and "potential", as well as the negatives of these terms and other words of similar meaning. Any forward-looking statements in this announcement are made based upon Premier Foods' estimates, expectations and beliefs concerning future events affecting the Group and subject to a number of known and unknown risks and uncertainties. Such forward-looking statements are based on numerous assumptions regarding the Premier Foods Group's present and future business strategies and the environment in which it will operate, which may prove not to be accurate. Premier Foods cautions that these forward-looking statements are not guarantees and that actual results could differ materially from those expressed or implied in these forward-looking statements. Undue reliance should, therefore, not be placed on such forward-looking statements. Any forward-looking statements contained in this announcement apply only as at the date of this announcement and are not intended to give any assurance as to future results. Premier Foods will update this announcement as required by applicable law, including the Prospectus Rules, the Listing Rules, the Disclosure and Transparency Rules, London Stock Exchange and any other applicable law or regulations, but otherwise expressly disclaims any obligation or undertaking to update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.