Mr Kipling owner returns to revenue growth

Food manufacturer Premier Foods saw revenues rise with adjusted pre-tax profit edging up as the business returned to volume driven revenue growth in the second quarter.

Mr Kipling. Photo credit: David Parry/PA

The firm, which is makes Mr Kipling cakes, reported revenue growth of 6.2 per cent in the second quarter with half year sales up to September 30, 2017, edging up 1.5 per cent.

Adjusted pre-tax profit at Premier Foods was £26.4m, a marginal increase of 0.5 per cent from the first half of the previous financial year. Operating profit increased 2.3 per cent to £22.5m.

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Premier Foods said international revenue increased 23 per cent in teh first half and that over 40 per cent of second quarter revenue growth came from strategic partnerships with Nissin and Mondelez International.

CEO Gavin Darby said: “We are pleased to report a return to revenue growth of 1.5 per cent in the first half of the year. A key highlight was our strong performance in the second quarter, with volume driven revenue up 6.2 per cent after a challenging first quarter.

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

“Our strategic partnerships with Nissin and Mondelez International are working very well, together delivering over 40 per cent of our revenue growth in the second quarter.

“We completed the signing of the new Mondelez International Global Strategic Partnership in the first half of the year and through our partnership with Nissin, 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.

“The cost efficiency programme we launched earlier this year is on track to deliver the expected benefits. We completed the issue of a new £210m high yield bond in June and our net debt was £21m lower than the same point last 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.”