British food manufacturer Premier Foods Plc (LON: PFD) looks set to meet expectations for the full year as the Company booked sales growth in the first quarter 2019.
For the 13 weeks ended 29 June 2019, Premier Foods saw total Group sales rise 1.1% and UK sales grow 2.6%. Branded sales grew 2.9% and 4.9% in these brackets respectively. The Group’s largest brand, Mr Kipling, saw sales grow 10% during the quarter.
The Company said that its campaign of increased marketing investment fro the year was already underway; with Mr Kipling and Batchelors already aired and more yet to come..
It added that it saw market share gains in 7 out of 8 of its top brands and that its expectations for the full year remained unchanged.
Premier Foods comments
Alastair Murray, Acting Chief Executive Officer of the Company, responded to today’s update,
“I am pleased to report an encouraging start to the year with Group sales up +1.1% and ahead +2.6% in the UK. As we previously noted, we are increasing our consumer marketing investment this year and both Mr Kipling and Batchelors have already benefited from TV advertising campaigns in the first quarter. Many of our largest brands have built on strong category positions and grown market share, and we achieved branded growth in the quarter of nearly 3%. These figures provide evidence that the Company’s strategy is delivering results. Our expectations for the full year remain unchanged.”
The Company’s share price rose 0.37% or 0.14p to 37.59p a share 17/07/19 12:36 BST. Shore Capital analysts retained their ‘Hold’ stance on Premier Foods stock.
Elsewhere, there has been news from other food and drink retailers; Hotel Chocolat Group Plc (LON: HOTC), Distil PLC (LON: DIS), Coca-Cola (NYSE: KO), Patisserie Holdings Plc (LON: CAKE) and Kerry Group Plc (LON: KYGA).