Premier Foods Plc · LSE:PFD

Premier Foods — Q4 2014 Earnings Presentation

23 slides from Premier Foods's earnings presentation, Jan 23, 2015

  1. Slide 1: Premier Foods Q4 Management Statement

    Premier Foods Q4 Management Statement 23 January 2015

  2. Slide 2: Cautionary Statement

    CAUTIONARY STATEMENT Certain statements in this presentation are forward looking statements. By their nature, forward looking statements involve a number of risks, uncertainties or assumptions that could cause actual results or events to differ materially from those expressed or implied by those sta

  3. Slide 3: Contents

    CONTENTS 1 Quarter 4 and 12 months to 31 December 2014 results review 2 Operating review 3 Q&A 4 Appendix 3 3

  4. Slide 4: Quarter 4 and 12 months to 31 December 2014 results review

    Quarter 4 and 12 months to 1 31 December 2014 results review Alastair Murray, CFO 4

  5. Slide 5: Branded sales of £220m in challenging market conditions

    BRANDED SALES OF £220m IN CHALLENGING MARKET CONDITIONS Q4 Sales (£m) 2014 Q4 2013 Q4 Growth (%) Power Brands 159 165 (3.5%) Support brands 61 63 (3.2%) Total branded 220 228 (3.4%) Non-branded 35 40 (11.5%) Total 255 268 (4.6%) Q4 YTD Sales (£m) 2014 Q4 YTD 2013 Q4 YTD Growth (%) Power Brands 519 5

  6. Slide 6: Power Brands sales trend

    POWER BRANDS SALES TREND Q1 Q2 Q3 Q4 December (2.3%) (3.5%) (3.5%) (5.1%) (6.4%)  Improving trend supported by good Mr. Kipling performance  Continued brand investment required to deliver further progress 6

  7. Slide 7: Trading profit £131m

    TRADING PROFIT £131m £m 2014 2013 Change (%) Underlying Trading profit 131 139 (6.1%) Net regular interest (54) (58) 7.7% Adjusted PBT 77 81 (4.9%) Notional tax @ 21.5%/ 23.25% (17) (19) 12.2% Adjusted earnings 60 62 (2.7%) Weighted average shares in issue (million) 707.1 366.1 Adjusted earnings per

  8. Slide 8: Financial position

    FINANCIAL POSITION £m 2014 2013 Change Net debt at 31 December 2014 568 831 263 IAS 19 pension deficit at 31 December (Gross) 323 603 280 IAS 19 pension deficit at 31 December (Net of deferred tax) 254 463 209  Net debt in line with expectations – Slightly lower capex offset by working capital move

  9. Slide 9: Operating review

    Operating review 2 Gavin Darby, CEO 9

  10. Slide 10: A review of 2014...

    A REVIEW OF 2014... Evolving UK Food Price Grocery Deflation Landscape Positive Significant Transformational Results from Complexity Organisational Capital Brand and Cost Restructuring Restructuring Investment Reduction 10

  11. Slide 11: Sweet treats investment delivering strong Q4 results

    SWEET TREATS INVESTMENT DELIVERING STRONG Q4 RESULTS Unique interactive marketing TV advertising Sales Volume Share Strong seasonal range Social media & PR performance Share source: IRI Retail sales value, 12 w/e 27 December 2014 11

  12. Slide 12: Grocery brand investment

    GROCERY BRAND INVESTMENT Brand New products Investment Q4 results Share Up Volumes Up Share stabilised Share source: IRI Retail sales value, 12 w/e 27 December 2014 12

  13. Slide 13: Commitment to brand investment continues in quarter

    COMMITMENT TO BRAND INVESTMENT CONTINUES IN QUARTER 5 New products TV advertising 13

  14. Slide 14: On track for new snack-pack line in May 2015

    ON TRACK FOR NEW SNACK-PACK LINE IN MAY 2015 2 → 14 +130% Format Sizes Capacity +33% Line Speed Automation 14

  15. Slide 15: We are strategically aligned with our major customers

    WE ARE STRATEGICALLY ALIGNED WITH OUR MAJOR CUSTOMERS Market SKU Category Leading Reduction Strategy Positions Programme 43% 2012 2014 15

  16. Slide 16: Faster growth channels

    FASTER GROWTH CHANNELS Convenience Online Hard discounters Category Leaders On the Go  Customised Joint Business Plans  Disciplined approach to Non-branded business  Cross-selling opportunities Meal for  Targeted product  Meal planner tools Tonight development resources  Dedicated internal res

  17. Slide 17: We are a more focused and agile organisation

    WE ARE A MORE FOCUSED AND AGILE ORGANISATION Grocery Sweet Treats International MD Alex Whitehouse MD Graham Hunter GM Peter Ellis 17 17

  18. Slide 18: Increasing our marketing & innovation resource

    INCREASING OUR MARKETING & INNOVATION RESOURCE Double +15% +100% Digit +% 2015/16 MEDIUM-TERM INCREASE IN SALES, INTERNATIONAL CONSUMER MARKETING & INNOVATION RESOURCE MARKETING GROWTH RESOURCE 18

  19. Slide 19: Funding our investment through cost reduction

    FUNDING OUR INVESTMENT THROUGH COST REDUCTION 56.0% 1,700 50.0% 975 2012 2014 2013 2014 SKUs Promotional ROI 2,800 1,230 2012 2014 Suppliers Capacity Optimisation 19

  20. Slide 20: Summary

    SUMMARY  Improving sales trends in Q4 and December  Highest quarterly market share for three years and highest December market share for four years  Positive results from areas where we are investing  Trading profit and Net debt in line with expectations  Business restructured to deliver future

  21. Slide 21: Q&A

    3 Q&A 21

  22. Slide 22: Appendix

    4 Appendix 22

  23. Slide 23: Food deflation in the UK for the first time in over 10 years

    FOOD DEFLATION IN THE UK FOR THE FIRST TIME IN OVER 10 YEARS 3.8 3.9 3.5 3.7 3.4 3.0 2.5 2.1 1.8 1.5 1.2 0.8 0.4 0.2 (0.2) (0.4) (0.9) 0.0 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14  Current levels are the lowest for

Premier Foods — Q4 2014 Earnings Presentation on 6ix