The group, whose brands include Mr Kipling cakes, Bisto gravy, Hovis bread and Branston pickle, said group sales excluding bulk flour increased 6% in the 16 weeks to 25 April, in line with analysts’ forecasts.
“We’ve seen continued strong sales growth by our grocery division during the first four months of the year,” said chief executive, Robert Schofield. “This was driven mainly by pricing achieved during 2008 despite sales volume growth being held back during the period by an element of destocking by some retailers.”
Premier Foods said its biggest brand – Hovis – continued to build market share following its relaunch last year. In March, Premier Foods refinanced its banking facilities and raised £379m in an equity issue, cutting its net debt to about £1.4bn.
Shares in Premier Foods have lost two-thirds of their value over the last year, but have increased by 28% over the last three months. The stock closed at 37.25p on Monday, valuing the business at £893m.
Source: Reuters
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