£25m bounceback from Premier Foods
Premier Foods plc in St Albans has turned a loss of £13 million into a pre-tax profit of £12m – a remarkable £25m turnaround – for the year to April 1.
Revenue was also up to £790.4m from £771.m last time for the company that owns the Mr.Kipling and OXO cube brands.
CEO Gavin Darby said: “This financial year has been a challenging one for the industry, with the return of food inflation and changing retailer promotional strategies.
“Despite this, we have grown market share in six of our eight largest brands, outperformed many of our peers in the latter part of the year and accelerated International sales growth to 18 per cent.
“We have continued to invest in brand innovation and marketing, our customer relationships remain strong and we recently agreed a £32m reduction in cash payments to our pension schemes over the next three years.
“With the industry changing rapidly, we have updated our strategy to give an equal focus to revenue growth, cost efficiencies and cash generation. In the UK, growing ahead of our categories continues to be a core objective for us and our plans for International are for further strong growth.
“We are excited by our global strategic relationships with Cadbury and Nissin and our recently announced cost savings programme is expected to deliver £20m over the next two years. We are focused on reducing our leverage ratio through profit improvement and debt reduction.
“This year has started on a solid footing; we are very pleased to announce an extension of our bank facilities and the proposed issue of a new bond. We plan to deliver progress in FY17/18, while noting this progress is expected to be weighted more to the second half of the year.”