Premier Foods Share News (PFD)

(Sharecast News) - Mr Kipling, Bisto and Oxo owner Premier Foods reported a jump in first-quarter sales on Wednesday as more consumers ate at home during the coronavirus lockdown, but said this was expected to return to more normal levels as people start eating out again.
In the 13 weeks to 27 June, group sales rose 22.5%, with branded sales up 27% and UK sales 23% higher. Online sales surged 115% during the quarter and Premier said it outperformed the market in every category.

The company said it saw elevated levels of demand for its grocery portfolio throughout the quarter as consumers ate the vast majority of their meals at home.

Chief executive officer Alex Whitehouse said: "We have grown faster than our categories during this period, both in standard retail and online channels. This reflects not only the strength of our market leading brands but also the excellent performance of our colleagues across the supply chain to ensure product availability while working in close collaboration with our customers to meet this elevated demand."

The company said it repaid £80m of its floating rate bonds in the quarter, which will reduce its annual interest bill by at least £4m. It is also exploring further opportunities to reduce financing costs as it continues to reduce net debt.

"As anticipated, early Q2 trading has seen further positive volume trends and our recently upgraded expectations for the full year remain unchanged," said Whitehouse.

However, it also cautioned that while second-quarter sales have started strongly, the trend is expected to normalise through the quarter as consumers gradually return to eating out.