Mr Kipling owner returns to revenue growth

Mr Kipling owner returns to revenue growth

Branded revenue was in line with past year, Premier Foods said, at GBP295.4 million, whilst non-branded revenue increased by 10% to GBP57.9 million. In the first half of the year, revenue grew by 23% on a constant currency basis and rose 30% in the second quarter. We completed the issue of a new £210m high yield bond in June and our Net debt was £21m lower than the same point previous year; a little ahead of our plans.

Revenue grew 1.5 per cent to £353m in the first half, with the strongest growth in the second quarter, when revenue jumped 6.2 per cent.

Sales of the brand jumped 30% over the six months to the end of September, according to its maker, Premier Foods, as consumers were tempted back by a new ready-to-eat version of the milky dessert, first launched in 1967 by Birds.

Premier Foods said it was on track to meet full-year expectations and had cut its net debt by £21m, slightly faster than planned.

Shore Capital analyst Clive Black said: "Premier Foods, the UK's number four food manufacturer in size by sales, has had a colourful and somewhat varied history as a listed entity, delivering much disappointment over the last decade or so for its shareholders".

Net debt fell to GBP535.3 million in the first half from GBP556.0 million in the prior year period.

Chief Executive Officer Gavin Darby said: "Our strategic partnerships with Nissin and Mondelez International are working very well, together delivering over 40% of our revenue growth in the second quarter".

"We completed the issue of a new £210m high yield bond in June and our Net debt was £21m lower than the same point a year ago; a little ahead of our plans".

Shares in Premier Foods were up 4.8pc to 38p in early trading.

It added that cost inflation, largely driven by the Brexit-hit pound, would continue to rise in the second half of the year, but at a lower rate.