LONDON (dpa-AFX) - Premier Foods plc (PFD.L) reported Thursday that its third-quarter Group sales decreased 2.2 percent to 255.6 million pounds from 261.4 million pounds last year. Looking ahead, the company said its expectations for the full year remain unchanged.
The company noted that the decline in Group sales for the quarter was primarily due to decreased sales of lower margin Non-branded Sweet Treats.
In its trading statement for 13 weeks ended December 29, 2018, the company said branded sales were up 0.2 percent in the quarter, while non-branded sales declined 10.3 percent.
The Group has grown market share in aggregate across its categories during the quarter, with its largest three brands, Mr Kipling, Bisto and Batchelors all notably delivering both volume and value share gains in the period.
International sales decreased by 27 percent in the quarter, as the business continued to work through the effects of high stocks of Cadbury cake in the Australian supply chain.
Additionally, the Group has implemented price rises to export wholesalers to ensure competitive product pricing across all markets, but which resulted in significantly lower volumes in this customer group in the quarter. Excluding these two factors, International sales would have risen 5 percent in the year to date.
In the Grocery business, Batchelors sales were ahead of the same period last year and have now recorded eight consecutive quarters of growth while Nissin Soba noodles grew by over 40 percent in the quarter.
Ambrosia returned to revenue growth and grew market share reflecting improved instore execution while Angel Delight sales increased 8 percent as the convenient pots range was expanded to incorporate further new products.
In the first three quarters of the financial year, Group sales declined 0.2 percent to 613.7 million pounds, as Branded sales growth of 0.4 percent was offset by lower Non-branded sales.
Premier Foods said that as previously announced, Gavin Darby, Chief Executive Officer, will leave the Group on 31st January 2019 and the Board's search process for Gavin's successor is underway.
From February 1, 2019, Alastair Murray, Chief Financial Officer, will assume the role of acting CEO on a temporary basis, in addition to his existing responsibilities, until a permanent successor is appointed.
The Group also said it continues to hold discussions with third parties regarding the potential disposal of its Ambrosia brand and the Board will provide further updates in due course.
Looking ahead, the company said its trading profit and adjusted earnings per share expectations for fiscal year 2018/19 remain unchanged, and net debt at the year-end is expected to be lower than the prior year.
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