Premier Foods, the owner of brands such as Mr Kipling and Bisto, has posted disappointing first-quarter trading figures as demand for some of its products was impacted by the exceptionally warm weather this summer.
Over the thirteen weeks to 28 June, group revenues increased just 0.3% on a constant currency basis to £239.7m, with a 1.2% rise in branded sales offset by a 7.8% fall in non-branded sales.
In its Grocery division, revenue was down 2.7% to £174.7m with branded sales falling 2.2% after facing tough comparatives with strong growth last year. Premier Foods also noted that categories such as gravy, stock and soup were impacted by higher-than-average temperatures during the quarter. However, new categories saw sales climb 38% with further strong growth from its Ambrosia Porridge pots, Cape Herb & Spice, and FUEL10K ranges.
There was better performance in its Sweet Treats unit, with revenues up 9.1% to £65.3m. Branded sales grew strongly in the quarter, up 11.4% on last year, driven by its product innovation programme.
Meanwhile, overseas revenues grew by 5% at constant currency compared to last year, with strong demand for its cakes and cooking sauces in Australasia.
Chief Executive Alex Whitehouse commented: “We expect branded revenue growth to build through the year, as we launch further new products, such as FUEL10K yogurt and granola pots. Our trading profit expectations for the full year are unchanged, underpinned by our proven branded growth model and ongoing cost efficiency programmes.”
Meanwhile, the firm announced the appointment of Catherine Lloyd as its new Chief Marketing Officer, replacing Yilmaz Erceyes, who left in May.
Joining Premier from Reckitt Benckiser, where she worked for 17 years, Lloyd will be tasked with helping drive forward Premier Foods’ brand-first strategy.
“This is an incredible role, looking after some of the biggest and most successful food brands in the UK,” Lloyd said.
“I’m really looking forward to meeting the full team and to building on the work they have been doing over the past six years to take our portfolio of brands to the next stage of growth, both in the UK and internationally.”
