Premier Foods is making three changes to its executive management team to “deliver sharper consumer, customer and operational focus”, while eliminating the managing director positions for its UK and international operations.
London-listed Premier Foods made the announcement today (12 November) in conjunction with its first-half results with progress made in reducing debt levels, putting the Mr Kipling and Batchelors soups owner on course to meet its deleveraging target.
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By GlobalDataIn what Premier Foods described as a more “functional approach”, it has appointed a chief customer officer in the form of Richard Martin, Yilmaz Erceyes as chief marketing officer and Paul Thompson as operations director. Despite the removal of the managing director function for Premier’s overseas operations, the company said “this does not detract from the group’s aspirations for its international business”.
It continued: “These changes are expected to accelerate the pace and agility of decision making and streamline internal processes and reporting.”
Premier Foods named a new chief executive in August in the shape of Alex Whitehouse to replace the departed Gavin Darby. Whitehouse had been managing director of the UK business, the role that is now being removed. Also during the summer, new chairman Colin Day was installed, a former executive at Reckitt Benckiser.
Whitehouse said of today’s results for the six months to 28 September: “Our operational strategy is unchanged, but we now have increased energy and impetus. We are targeting some largely operational cost savings over the next two years and we are on track to meet our net debt/EBITDA target of three times by the end of this financial year. With a better H1 than planned, we are confident in our expectations for progress in the full year. As we look a little further ahead, and in light of our disciplined and consistent track record of net-debt reduction, we start to see options for our future deployment of cash.”
The management changes follow a number of other departures and new appointments. Former finance chief Alastair Murray, who had also been occupying the CEO seat on temporary basis following Darby’s exit, also left Premier Foods during the summer, and Duncan Leggett, the company’s group director of financial control and corporate development, was elevated to the CFO role on an interim basis.
Former chairman Keith Hammell stepped down in July.
On the financials, net debt dropped by GBP38.8m to GBP470.7m (US$603.6m). First-half revenue rose 2.4% to GBP366.7m, with branded up 4.3%.
Adjusted net profit before tax climbed 5% to GBP31.7m, with statutory profit before tax at GBP15m. Profit after tax was GBP12.3m.
Whitehouse said: “In presenting my first set of results as CEO of Premier Foods I’m encouraged by our strong start to the year with total revenue up 2.4% and branded revenue ahead 4.3%. Our biggest brand, Mr Kipling, has continued its momentum from last year, with sales growth of +8%, while sales of our Nissin branded ranges have more than doubled. We have launched a number of new product ranges including our new plant-based brand Plantastic and our International business returned to growth in Q2.”
See just-food’s analysis: New guard at Premier Foods but same old battles to win
