Premier Foods in profit warning

AppId is over the quota
AppId is over the quota
7 October 2011 Last updated at 07:14 GMT Mr Kipling is one of the eight "power brands" the group is investing in Premier Foods, the owner of brands such as Hovis, Bisto and Mr Kipling, has warned its full-year trading profit will fall below expectations.

The UK's biggest food manufacturer had been looking at a profit of between ￡214m and ￡232m.

But the company said current trading was "disappointing" and "significantly behind our expectations".

Sales in the third quarter fell 3.6% on a year ago, while the group's market share declined by 1.9%.

The group said it was in "constructive dialogue" with banks on refinancing.

New chief executive Michael Clarke has outlined five key priorities for the business in the short term.

These are agreeing a refinancing plan, improving sales and marketing, reducing the size of Premier's portfolio, reducing costs, and investing in eight "power brands" that they feel have the best growth prospects.

The eight brands are Ambrosia, Batchelor's, Bisto, Hovis, Lloyd Grossman, Mr Kipling, Oxo and Sharwood's.

Mr Clarke, who had previously been president of Kraft Foods Europe, took the helm at Premier Foods on 1 September.

View the original article here