Premier Foods Q1 sales drop as grocery weighs

Paterniano Del Favero
Luglio 20, 2017

While the overall outlook in the grocery market remains competitive and challenging, the company said it has driven market share gains in its key brands, Bisto, Batchelors, Loyd Grossman, Mr Kipling and Cadbury cake in the first quarter, and that these improvements underpin confidence for the remainder of the year.

Non-branded grocery sales also experienced an increase of 8.9%, benefiting from increased sales at Knighton Foods.

It notes that grocery sales were adversely impacted by lower market volumes as a result of the warm weather in June, but adds that the business saw "encouraging market share gains" in major retailers.

At the same time sales of Premier's branded products - which include Mr Kipling cakes, Ambrosia rice puddings and Bisto gravy - slumped by almost 8%.

Premier Foods noted that it anticipates stronger trading in the second quarter, as it begins to see a reversal of the reduction in multi-buy promotions which hit its Grocery volumes in the second half of the prior year.

The company's global business saw sales rise 20%, with Cadbury cake in Australia continuing to grow sales, volumes and market share.

He added: "We expect to report positive sales growth in the second quarter, broadly flat sales in the first half and our expectations to deliver progress in the full year are unchanged".

It said: "The group remains confident of delivering positive sales growth in quarter two and broadly flat sales for the first half, assuming normal United Kingdom temperature trends".

Shares in Premier Foods were trading up 0.7% at 39.00 pence on Thursday.

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