Power brands boost Premier Foods’ figures

PREMIER Foods, the company behind major brands such as Hovis, Sharwoods and Mr Kipling, has reported improved underlying trading results.

The company, which recently sold its Middleton-based Sarson’s Vinegar business as part of a plan to slim-down and cut debt by selling off non-core brands.

Its focus is on its ‘power brands’  – Ambrosia, Batchelors, Bisto, Hovis, Loyd Grossman, Mr. Kipling, Oxo and Sharwood’s.

Underlying sales, excluding milling, in the six months to the end of June rose 1.1% to £757.1m and trading profit by 3.2% to £53.2m.

Chief executive Michael Clarke said: “I’m pleased with the progress we are making to stabilise the business, re-focus the portfolio and invest in our future growth.

“Our strategy of focusing on our Power Brands is starting to gain traction. Power Brand sales were up 2% and sales of Grocery Power Brands increased by a healthy 4.9%, reflecting consistent improvement in market shares. Trading profit increased 3.2%, in line with our expectations.

“Plans to simplify the business and drive further efficiency and effectiveness are proceeding ahead of plan and we will now deliver the previously announced £40m savings by the end of 2012.  As we continue our divestment programme, we plan to take further costs out of the business. ”

Having sold Sarson’s, Premier – which has a 200-strong finance and HR base in Spring Gardens, Manchester, and a number of factories and bakeries around the region – is looking to sell other businesses including Hartley’s Jam.

Family-owned Manchester preserves company Duerrs has expresssed an interest in buying Hartleys.