Sales up 1.5pc for Premier Foods

By John Corser | Business | Published:

Premier Foods, which has seen half-year revenues pick up by 1.5 per cent to £353.3 million thanks to a strong second quarter, is consolidating its logistics operations at Tamworth in Staffordshire.

The Premier Foods group produces a wide range of top supermarket brands

Pre-tax profits also rose to £26.4 million for the six months ending in September, up from £26.3 million for the period in 2016 for Premier, whose brands include Bisto, Batchelors and Sharwood

The group, includes subsidiary Knighton Foods at Adbaston, Staffordshire, where Angel Delight and Bird's custard powder are made and which employs many people from over the county border in Shropshire.

There was a decline in volumes and lower efficiencies during the first half of the year at Knighton Foods, which materially impacted on the grocery divisions contribution.

Gavin Darby, chief executive of Premier Foods, said: "We are pleased to report a return to revenue growth of 1.5 per cent in the first half of the year.

"A key highlight was our strong performance in the second quarter, with volume driven revenue up 6.2 per cent after a challenging first quarter.

"Our international business continues to go from strength to strength and saw revenue growth of 23 per cent in the first half of the year.

"Our strategic partnerships with Nissin and Mondelez International are working very well, together delivering over 40 per cent of our revenue growth in the second quarter."

During the year, the group has started the major transformation of its warehousing and distribution operations. The first phase at Tamworth experienced some initial implementation challenges, but these are now substantially resolved and the plan to deliver the programme remains on track.

John Corser

By John Corser
Business Reporter - @JohnCorser_Star

Express & Star business reporter at head office, Wolverhampton. Welcomes all news of companies and business organisations.


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