Mixed start for Premier Foods

12th May 2009 07:31

Hovis to Bird's Custard group Premier Foods pushed sales up by 3% in the first four months of 2009 helped by price rises last year. Profit expectations for this year are unchanged.The heavily indebted group, which raised £379m through a cash call in March, added that excluding sales of bulk flour, group sales were up 6% in the first four months.Sales volume growth in the UK was held back by shops' destocking. Total branded volumes in the UK grocery market remain "firm" but there is an increased focus on value, it added. Sales for the Irish business were broadly flat with currency translation benefits offsetting lower volumes.Baking division sales fell by 4% hit by the loss of a bulk flour contract. Bread sales rose by 6% with strong branded sales growth partly offset by lower volumes of own label bread. Hovis' market share rose to 25.7%.