Monday 29 June 2009

Premier Foods sticks to first-half and full-year guidance

Premier Foods PLC (LSE: PFD) said trading over May and June has continued in line with the trends seen in the first four months of 2009 - covered in its mid-May interim management statement in which it said it has made a solid start to the 2009 financial year.

“Our expectations for sales and profit for the half year and the full year are unchanged,” Premier Foods said.

In today’s trading update for the half year ended June 27 2009, the company said sales for its Grocery division continued to see good growth, driven by 2008 pricing actions with growth in market share supported by new product launches and strong promotional activity.

Sales in the bread business continued to see excellent sales and market share growth as it continued to invest behind Hovis. Although sales of bulk flour were lower than last year due to the previously announced exit from a low margin flour contract, bulk flour profitability has been unaffected.

The Chilled division continued to see good sales growth of both Quorn and retailer branded products although profitability has been reduced by the high level of marketing investment and increased and increased manufacturing costs in the Meat free business. Integration synergies remain on track, the company added.

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