Premier Foods said that its first-half revenue rose by 1.5%, to £353.3 million, with trading profit steady, at £48 million. Operating profit went up by 2.3%, to £22.5 million.
The group said that it posted a ‘strong performance’ in the second quarter of the year, with more than 40% of revenue growth in this period coming from its international strategic partnerships with Nissan and Mondeléz.
Return To Growth
“We are pleased to report a return to revenue growth of +1.5% in the first half of the year,” said Gavin Darby, Premier Foods' chief executive. “A key highlight was our strong performance in the second quarter, with volume-driven revenue up 6.2%, after a challenging first quarter. Our international business continues to go from strength to strength and saw revenue growth of 23% in the first half of the year.”
Darby noted that through the group’s partnership with Nissan, Batchelors is now the “fastest-growing major brand in our portfolio, following the launch this year of convenient pot-format products, such as Super Noodle Pots.”
Debt Reduction
Net debt at the firm was £535.3 million – a £20.7 million improvement on the previous year, the company said.
“The cost-efficiency programme we launched earlier this year is on track to deliver the expected benefits,” said Darby. “We completed the issue of a new £210m high-yield bond in June, and our net debt was £21m lower than the same point last year – a little ahead of our plans. Overall, we continue to expect the business to make progress in the second half of the year, and our expectations for the full year remain unchanged.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
