Premier sales dip but profits rise
1 min read
Premier Foods, the UK's largest food producer whose brands include household names like Hovis, Mr. Kipling cakes and Oxo, saw sales dip in 2010 – a year it described today (15 February) as important in its history.
The company, which employs around 15,000 people and operates from over 60 sites across the UK and Ireland, reported sales for the year to 31 December 2010 down 3.5% to £2.57 billion although trading profit edged up 0.6% to £311 million. The fall in sales was, said Premier, due to lower non branded sales. Branded sales volume was up 3.1%.
Commenting on the results CEO Robert Schofield (pictured) said: "2010 has been an important year in the history of Premier Foods. During the year we set out a financial strategy which we have progressively implemented by closing out our interest rate swap exposure, closing our final salary pension scheme, generating £124m in a recurring cash flow and obtaining a credit rating to allow us to access bond markets. Since the end of the year we have also agreed the sale of two businesses which will reduce our debt level to less than £900m, compared to £1,365m a year ago.
"Our business has proved resilient, with branded volume market share growth, increased margin from procurement and manufacturing efficiency and lower operating expenses. There is more to do in each of these areas and we have aligned the organisational structure behind the strategy of growing our brands. We would expect our focus to enable the Group to show progress from our new base after the disposals without a further deterioration in the consumer environment".
