LONDON (ShareCast) - (Sharecast News) - Premier Foods posted a rise in first-half pre-tax profit on Tuesday as it reaped the benefits of its relaunch of Mr Kipling and strong sales from its Nissin ranges.
In the half-year to 28 September, adjusted pre-tax profit was up 5% to £31.7m on revenue of £366.7m, up 2.4% on the first half of last year.

Net debt fell to £470.7m from £509.5m and the company said it was on track to meets its 3.0x net debt/EBITDA ratio by year end.

Branded sales rose 4.3% to £309.7m, driven by Mr Kipling, which saw sales rise 8% during the half as it benefited from a major brand relaunch and new TV advertising. Non-branded sales were down 6.8% to £57m, however.

Premier said its Nissin Soba Noodles & Cup Noodles continued their "exceptionally strong growth trajectory" in the first half, with sales growing 111% from the same period a year ago.

Recently-appointed chief executive Alex Whitehouse said he was "encouraged" by the "strong start to the year".

"With a better H1 than planned, we are confident in our expectations for progress in the full year. As we look a little further ahead, and in light of our disciplined and consistent track record of net debt reduction, we start to see options for our future deployment of cash," he said.

At 1135 GMT, the shares were up 8.1% at 36.06p.

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