Premier Foods Posts 1.5% Increase In Revenue In H1

Sales in the group's portfolio of brands have all grown

Sales in the group's portfolio of brands have all grown

"Our global business continues to go from strength to strength and saw revenue growth of +23 per cent in the first half of the year".

The food manufacturer's revenues climbed 1.5pc to £353.5m in the 26 weeks to September 30, while it posted a slender profit of £300,000, compared to a £55.6m loss previous year.

Revenue grew 1.5 per cent to £353m in the first half, with the strongest growth in the second quarter, when revenue jumped 6.2 per cent. Branded revenue increased by 5.7% to GBP152.3 million, and Non-branded revenue grew by 8.9% to GBP30.9 million.

Premier Foods said 44% of the its revenue growth in the second quarter came from strategic partnerships products, including Batchelors Super Noodle Pots, Soba Noodles and Cadbury cakes.

Operating profit was up 2.3% to £22.5 million.

Premier Foods, which became embroiled in a takeover tussle with USA food giant McCormick previous year, said more than 40 per cent of revenue growth during the second quarter came from its partnerships with Japanese noodle-maker Nissin and Cadbury-owner Mondelez International.

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".

At the end of the six month period the company's net debt was £535.3m, an improvement of £20.7m on the same period last year, according to the group's half year results.

During the year the company performed a cost efficiency programme, which they said was on track to deliver the "expected benefits".

Shares in the firm were up more than 6 per cent in early morning trading on the London Stock Exchange, as investors cheered a brighter performance from the firm. We completed the issue of a new GBP210 million high yield bond in June and our net debt was GBP21 million lower than the same point past 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", Darby added.

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