Premier Foods's sales boosted by Mondelēz and Nissin partnerships

The Premier Foods group produces a wide range of top supermarket brands

"We are pleased to report a return to revenue growth of +1.5% in the first half of the year", said Gavin Darby, Premier Foods chief executive.

International revenue at the group behind brands such as Bisto, Batchelors, Loyd Grossman, and Mr Kipling, increased by 23pc year-on-year in the six month period, driven by the group's partnerships with Nissin and Mondelez International.

Shares jumped 8.90% to 39.74p after the baked goods and food ingredients group posted a profit of £300,000 for the six months to the end of September, compared to a £55.6mln loss a year ago.

"Our global business continues to go from strength to strength and saw revenue growth of +23 per cent in the first half of the year".

Premier Foods, which became embroiled in a takeover tussle with U.S. food giant McCormick previous year, said more than 40 per cent of revenue growth during the second quarter came from its partnerships with Japanese noodle-maker Nissin and Cadbury-owner Mondelez International. "A key highlight was our strong performance in the second quarter, with volume driven revenue up +6.2% after a challenging first quarter".

Revenue grew 1.5% to £353.5mln, boosted by partnerships with Cadbury owner Mondelez International Inc (NASDAQ:MDLZ) and Japanese noodles maker Nissin.

Premier's adjusted profit before tax saw a slight increase of 0.5% to £26.3M, while its operating profit grew by 2.3% to £22.5M.

The group said it was on track to hit its annual financial targets for the year, and had seen net debt fall 4 per cent to £535.3m.

This year, Premier made a determined move towards more convenient packaging for many of its products as consumers opt for foods 'on the go'.

The group said it had experienced material input cost inflation in the past year from both commodity cost increases and the devaluation of Sterling, but it was managing this by improving its efficiency, adjusting "promotional mechanics and formats where appropriate", and introducing limited price increases.

Shares were up more than 6% in early morning trading on the London Stock Exchange (standing at 39.23p (38.48c) at the time of going to print).



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