Premier Foods: reports solid start to 2009

London / UK. (pf) Group sales in the first four months of the year were three percent ahead compared to the same period in 2008. Excluding sales of bulk flour, Group sales were up six percent in the first four months primarily due to price rises achieved during 2008 – Premier Foods PLC says in an Interim Management Statement for the 16 weeks ending 25 April 2009. Summary:
Group sales excluding bulk flour up by six percent.
Total Group sales up three percent.
Hovis continuing to build market share.
Shared service centre now operational.
Synergies being delivered in line with plan.
Expectations for the full year remain unchanged.

Chief Executive Robert Schofield: «We are pleased by the solid start that the Group has made in 2009. We have seen continued strong sales growth by our Grocery division during the first four months of the year. This was driven mainly by pricing achieved during 2008 despite sales volume growth being held back during the period by an element of destocking by some retailers. Our biggest brand, Hovis, has continued to make excellent progress following its relaunch last year and is now the clear number two in the wrapped bread market with a market share of over 25%. Further activity and innovation is planned on Hovis during the remainder of 2009. Quorn, our market-leading meat free brand, is also undergoing a brand relaunch with new advertising, innovation and packaging. Synergy delivery remains on track with the consolidation of back office operations into the new Group shared service centre at Manchester progressing well. Following the successful moves to strengthen the Group’s balance sheet, we continue to focus on increasing cash flow generation and reducing our debt whilst developing our plans for increased innovation behind our industry-leading brand portfolio».

Hovis bakery division

Sales in the baking business were six percent ahead of the same period last year with strong branded sales growth partly offset by lower volumes of own label bread. Bulk flour sales have primarily been reduced by the exit from a low margin flour contract during 2008. Sales for the division as a whole were four percent lower than the same period last year. Hovis market share has continued to improve following the recent brand relaunch, reaching 25,7 percent for the four weeks ending 18 April, compared to 22,2 percent for the same period last year. The sales of Le Pain Croustillant, Sofrapain SAS and Martine Specialites SAS have been completed.

The chilled business has started the year well, with sales eight percent ahead of the same period a year ago. The chilled ready meals business is benefiting from the contract wins from last year, whilst the chilled cake business is also performing well year on year.

Info: Interim Management Statement (complete press release).