Premier Foods first quarter sales up one per cent

Hovis bread and Mr Kipling cakes maker Premier Foods said first quarter sales, excluding Milling, increased one per cent as it sticks to full year guidance.

Sales, excluding Milling, rose to £327m while Branded sales increased 2.2% in the three months ending March 31st 2013 after a 3.5% increase in Grocery Power Brand sales.

Chief Executive Officer Gavin Darby said: "The restructuring of our Bread business remains on track while the benefits of the previously announced £20m of overhead cost savings in 2013 are being delivered."

"Despite a continued challenging consumer environment, I believe we have the right strategies in place to make further progress this year, with expectations unchanged," he added.

The UK food producer said it believes the right strategies and plans are in place, including the delivery of cost savings, to make further progress in 2013.

Premier Foods said it remains on track to deliver the previously announced £20m cost savings in 2013.

Net debt expectations for 2013 remain unchanged, with recurring free cash flow generation in the year expected to be in the range of £40-60m.

CJ