Warm weather dampens Premier

Manufacturing News, Source : TheManufacturer.com
Published : 22 Dec 2006 8:55

Oxo cubes to Angel Delight group Premier Foods said today that its brand development programme was going well but cost pressures over the second half of the year exceptionally warm weather which continued into December meant trading for the year would be at the lower end of its expectations.

Providing a trading update for the year ending 31 December, premier nevertheless said it expected total sales for the year to be up by 20 per cent.

CEO Robert Schofield said 2006 had been a year of transformation for Premier. “The acquisition of Campbell’s in August enhanced our brand portfolio and we are on track to complete the integration of the business in the first quarter of 2007. We are looking forward to completing the acquisition of RHM early next year and are excited by all the opportunities that bringing these two great businesses together will offer,” he said.

However, the warmer weather, which extended through to early December, had meant that Christmas trading commenced later than expected and the out-turn for the year is dependent on trading in the final two weeks of the year.

“As indicated at the time of the interims, we have continued to see cost pressures over the second half of the year, which we do not expect to be fully offset until the early part of 2007. These pressures coupled with the effect on volumes of the exceptional period of warm weather which has continued into December means that we anticipate that trading for the year will be at the lower end of our expectations while still delivering like-for-like trading and branded sales growth,” Schofield concluded.

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