* Co sees FY sales, profit ahead of expectations
* Expects 20% jump in Q1 sales
* Astronomical flour sales - CEO
* Shares up nearly 8%
(Adds CEO and analyst comments, shares)
By Tanishaa Nadkar
June 24 (Reuters) - Britain's Premier Foods, maker of OXO
stock cubes and Bisto gravy, said on Wednesday it
expected revenue and profit to exceed estimates for the fiscal
year that began at the end of March, as the coronavirus lockdown
drove people to cook at home.
Chief Executive Officer Alex Whitehouse said there had been
an "astronomical" rise in flour sales as people returned to
their kitchens to bake and reached for their recipe books while
restaurants were shut.
But the company, which expects first-quarter revenue to jump
by around 20%, added that it was unclear as to how consumers'
eating habits might change as lockdown measures ease.
Shares were up 7.9% at 64 pence by 0925 GMT.
England's pubs, restaurants and hotels will be allowed to
re-open on July 4, Prime Minister Boris Johnson said on Tuesday.
"Premier's challenge now is working out how to capitalise on
the nation's newfound love affair with cooking and find ways to
tempt people back into the kitchen once lockdown ends," eToro
analyst Adam Vettese said.
The company plans to increase consumer marketing and said
its cost savings programme is expected to deliver ahead of its
original 5 million pound target over the next two years.
Peel Hunt analysts said that while the growth rate could
moderate over the next few months as life returns to normal,
some changed habits are likely to remain, particularly the
greater focus on cooking.
The recent string of positive announcements also bode well
for Whitehouse, who took the helm last year and has been
credited with turning around Premier's UK business.
Adjusted pretax profit rose 6% to 93.3 million pounds
($116.73 million) for the year ended March 28, beating analyst
expectations of 93 million pounds, according to a company
compiled consensus.
($1 = 0.7993 pounds)
(Reporting by Tanishaa Nadkar in Bengaluru; Editing by Rashmi
Aich and Peter Graff)
Premier Foods (PFD)
