Preliminary results for the financial period ended 4 April 2015

Preliminary results for the financial period ended 4 April 2015

Preliminary results for the financial period ended 4 April 2015

 Investment strategy delivering results

  • Last quarter branded sales broadly flat, continuing an improving trend
  • Volume and value market share gains across our categories
  • Marketing investment increased over 80% in last six months and delivering encouraging results
  • Trading profit2,3 for 52 weeks to 4 April 2015 £131.0m in line with expectations
  • Loss after tax (£92.7m) due to impairment charges
  • Net debt of £584.9m in line with expectations
  • Combined pension deficit reduced to £211.8m from £603.3m

Premier Foods today announces its Preliminary results for the financial period to 4 April 2015, including unaudited pro forma results for the 52 weeks to 4 April 2015.

Gavin Darby, Chief Executive Officer:

“For the last quarter, I am pleased to again report an improving sales trend, which has benefitted from a combination of brand investment, exciting new products and strong retail execution. Across our branded portfolio, we have delivered volume and value share gains, while we have driven growth in our cake and flavourings & seasonings categories.

Over the last twelve months, six of our major brands have benefitted from TV advertising and we have launched a number of new products to market, with more to come this year. We have also made good progress with our major customers and we now hold significantly more category captaincy roles than we did three years ago.

While it is encouraging to note the return of volume growth to both our categories and the wider grocery market, we expect the near term trading environment to be challenging, and our expectations for the year are unchanged. I remain confident that our strategy of investing in brands, innovation and infrastructure is the right one for Premier Foods, and see increasing evidence that our efforts are starting to pay off. The Board is firmly focussed on the creation of future value, and believes that its investment and growth strategies, combined with a focus on cost efficiency, Trading profit delivery and organic de-leveraging, are well positioned to deliver success.”

 Continuing operations

 4 April 2015
(15 months)

 31 Dec 2013
(12 months)

 Revenue (£m)

964.3

 843.0

 Trading profit (£m)3

150.2

 139.5

 (Loss) after taxation (£m)

(92.7)

 (46.7)

 Basic loss per share (pence)

(12.7)

 (12.8)

 Adjusted earnings per share (pence)

   9.0

  17.0

 

Pro forma results
(unaudited)

 4 April 2015
(52 weeks)

 5 April 2014
(52 weeks)

Change
(%)

 Branded sales (£m)

 683.7

 712.8

 (4.1%)

 Trading profit (£m) 2,3

 131.0

 139.9

 (6.4%)

 Adjusted profit before tax (£m)5

 83.2

 74.9

 11.1%

 Adjusted earnings per share (pence)

 8.0

 15.6

 (48.9%)

Measures above are defined on page 3 and reconciled to statutory measures in the appendices, where necessary

As a result of the Company’s decision to move to a strategic business unit structure, the Company has for the first time been required to assess the carrying value of the Sweet Treats business as a stand alone entity. The goodwill allocated to the business unit has been assessed and consequently, the Company has recognised an impairment of goodwill of £67.9m in respect of its Sweet Treats business for the financial period ended 4 April 2015. Despite this non-cash charge, the Company considers the Sweet Treats business presents many further opportunities for future growth.

A presentation to investors and analysts will take place today, 19 May 2015, at 9.30am. The presentation will be webcast at www.premierfoods.co.uk/investor-relations. A recording of the webcast will be available on the Company’s website later in the day.

A factsheet of the Preliminary results is available at:
www.premierfoods.co.uk/investor-relations/results-centre

 

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