Premier Foods : releases our half year results for the 26 weeks ended 1 October 2016

We've announced our half year results for the 26 weeks ended 1 October 2016

Continued strategic progress despite weaker second quarter sales for Grocery

- H1 Group underlying sales down (1.8%) due to weak Grocery sales (4.0%); partly offset by good performance in Sweet Treats +4.1%

- Q2 Grocery underlying sales down (9.5%) due to warmer weather after good Q1

- Sweet Treats & International delivering consistently strong quarter on quarter growth

- Total reported sales up +2.0% reflecting Knighton Foods consolidation

- Underlying Trading profit £48.0m, £2.0m lower partly due to increased marketing investment

- Net debt £556.0m at H1; £29m lower than prior year H1

- Combined IAS 19 pensions deficit £228.8m due to fall in discount rates

- Net present value of pension deficit recovery schedule expected to reduce by c.£100m

- Profit and Net debt expectations for the year unchanged

Gavin Darby, Chief Executive Officer:

'Following a good first quarter where we saw a number of our brands in growth, the second quarter was much weaker in our Grocery business due to warmer weather which resulted in lower sales in the first half overall. However, our Sweet Treats and International businesses continued to demonstrate their strong momentum, delivering against our strategic priorities and growing over 4% and 9% respectively.'

'We remain very confident in our strategic progress, our customer relationships are strong and we have an extensive new product innovation programme planned for the balance of the year. We are pleased with the progress that we have made on the 2016 triennial pension scheme valuations, which has resulted in the NPV of the pension deficit recovery plan expected to reduce by c.£100m. We expect Group sales to grow between 2-4% in the second half of the year and our profit and Net debt expectations for the full year remain unchanged.'

Measures above are defined on page 2 and reconciled to statutory measures in the appendices.

A presentation to investors and analysts will take place today, 15 November 2016, at 9:00am. The presentation will be webcast at www.premierfoods.co.uk/investors/investor-centre. A recording of the webcast will be available on the Company's website later in the day.

A conference call for bond investors and analysts will take place today, 15 November 2016, at 1:30pm. Dial in details are outlined below:

A factsheet of the Half Year results is available by clicking here or at: www.premierfoods.co.uk/investors/results-centre

This announcement contains inside information

- Ends -

Notes to editors:

1. The statutory accounting period is the 26 weeks from 3 April 2016 to 1 October 2016 and comparative results are for the 26 weeks from 5 April 2015 to 3 October 2015.
2. Underlying business is defined as continuing operations excluding the results of previously disposed businesses and includes results of acquired businesses in current and comparative reporting periods.
3. Trading profit is reconciled to profit/(loss) before tax in the appendices and is defined as profit/(loss) before tax before net finance costs, profits and losses from share of associates, amortisation of intangible assets, impairment, fair value movements on foreign exchange and other derivative contracts, restructuring costs, and net interest on pensions and administration expenses.
4. Underlying Trading profit is Trading profit as defined in (3) above and excludes the results of previously disposed businesses and includes results of acquired businesses in current and comparative reporting periods.
5. EBITDA is Trading profit excluding depreciation.
6. Underlying adjusted profit before tax is defined as underlying Trading profit as defined in (4) above, less net regular interest. Net regular interest is defined as net finance cost after excluding write-off of financing costs, fair value movements on interest rate financial instruments and other interest.
7. Underlying adjusted earnings per share is defined as Adjusted profit before tax less a notional tax charge of 20.0% (2015/16: 20.0%) divided by the weighted average of the number of shares of 827.7million (26 weeks ended 3 October 2015: 825.7million).

A Premier Foods image gallery is available using the following link: www.premierfoods.co.uk/media/image-gallery

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