Premier Foods hit by pension charge; launches new plant-based range
By Michele Maatouk
Date: Tuesday 14 May 2019
(Sharecast News) - Mr Kipling and Oxo owner Premier Foods said on Tuesday that it swung to a statutory full-year loss as it took a hit from an anti-discrimination ruling on women's pensions.
In the year to 30 March 2019, adjusted pre-tax profit rose 12.1% to £88m on revenue of £824.3m, up 0.6% on the previous year. However, on a statutory basis, the company made a pre-tax loss of £42.7m versus a profit of £20.9m as it recognised £41.5m of costs associated with the equalisation of guaranteed minimum payments for pensions accrued between 1990 and 1997.
Mr Kipling put in a solid performance, with revenue up 12% overall and 10% and 48%, respectively, in the UK and international markets.
In the UK, it benefited from a major brand relaunch, including an updated pack design and brand logo, television advertising, and new product development such as Unicorn and Flamingo slices. Internationally, Mr Kipling saw success in Australia and the USA.
The company's international business saw revenues fall 12.5% during the year, however, as Cadbury cake sales were dented by high stock levels in Australian customers' supply chains, a situation which Premier said has now normalised.
The group also announced the launch of a new health brand called 'Plantastic' as it looks to target the growing trend for plant-based foods and vegan products. The products are planned for launch during the course of this year in the desserts, cake and soup categories. They will be sourced from a combination of in-house manufacturing and co-manufacturer partners.
Chief executive Alastair Murray said: "While the first half of this year is expected to start slowly, reflecting the timing of consumer marketing investment, the group anticipates that with its encouraging new product innovation programme and strong customer relationships, it will make further progress in the year."
At 0930 BST, the shares were down 1% at 35.44p.
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