Premier Foods serves up hot profits

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Manufacturing News, Source : TheManufacturer.com
Published : 06 Mar 2007 10:47
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Rice pudding to pickles group Premier Foods today hailed 2006 as “a year of transition” as it served up healthy sales and profits.

Premier - which manufactures foods like Ambrosia custard and rice pudding, Branston pickle, Hartley's jams and marmalade and Sarsons vinegar – reported sales for the year ended 31 December were up 21.5 per cent to £959.4 million (2005: £789.7m) while pre tax profits soared 12.2 per cent to £58.1 million (2005: £51.8m)

Chief Executive Robert Schofield said 2006 had been a year of transformation for Premier. “The Campbell’s business acquired in August fits Premier like a glove,” he said. “It has significantly enhanced our brand portfolio, adding the iconic British brands of Oxo, Batchelors and Homepride whilst offering us substantial operational synergies. The integration has been proceeding at pace and to plan.”

He went on: “In December, we announced our agreed offer for RHM, which has received resounding support from both Premier’s and RHM’s shareholders. This acquisition is due to complete on 16 March, following which Premier will become the UK’s number one food supplier. The acquisition meets all our acquisition criteria and again brings a fantastic stable of brands into the portfolio including among others Hovis, Mr Kipling, Bisto and Sharwoods, along with very substantial synergies.”

The acquisitions had been made alongside a growing existing business, which had more than compensated for the impact of the end of Premier’s Cadbury chocolate beverages licence, significant raw material and energy price inflation and the extended warm weather through the summer and autumn.