UK packaged food company Premier Foods as reported a 3.9% decline in turnover from continuing operations to £409.2m (US$754.3m) for the six months to 2 July 2005, but said its grocery business performed strongly.
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Operating profit from continuing operations was up 9.7% to £42.8m. The company said it had continued its focus on growing its brands; branded sales now account for 56% of the company’s grocery sales. Premier also said its acquisitions of Bird’s and Quorn were performing to expectation.
“This is a solid set of results with like-for-like operating profit up 5.4%. It demonstrates the strength of our branded grocery business, which saw good performances from our principal brands, and continued progress on reducing costs,” said Robert Schofield, chief executive of Premier Foods.
“The outlook for the remainder of the year is for our core business to remain on track with our grocery business compensating for our disappointing potatoes business. With regard to our recently acquired Quorn business we intend to invest £2m more in the second half on marketing and innovation to support our growth plans,” he added.
Premier, which owns the Branston pickle brand, also announced the acquisition of 100% of the ordinary share capital of Monument (GB) Limited and certain assets (trading as FW Gedney) for £5.5m cash on a cash-free, debt free basis. Gedney’s is a potato and fresh produce supply business and will be integrated into Premier’s existing potato supply business.
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By GlobalData
