RHM, the subject of a GBP2.6bn (US$5.14bn) takeover bid from Premier Foods, has reported a six-month turnover from continuing operations of GBP757.3m, up 2.4% compared with the same period last year.
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The manufacturer reported “good growth” in Hovis and Mr Kipling sales and experienced a significant improvement in the operating and financial performance of its cake activities.
Operating profit before restructuring costs was GBP71.1m, up 1.1% for RHM, which announced an interim dividend per share of 5.5 pence for the period.
RHM chairman Jan du Plessis said: “RHM’s financial performance in the first half of the year demonstrates the resilience of our businesses and brands.
“We will continue to increase investment behind our brands in the second half of the year. Equally, we will seek to mitigate our cost pressures and aggressively pursbe further cost saving opportunities. While critical winter months are still ahead of us, the Board is confident that we will make further progress in the year as a whole.”
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By GlobalDataThe company added that culinary brands’ autumn trading was back on track following soft summer sales affected by exceptionally hot weather.
RHM CEO Ian McMahon said: “Culinary Brands is on track to deliver a much stronger second half performance. The turnaround in cakes is expected to continue. Customer Partnerships should continue to perform satisfactorily. Bread bakeries’ performance will depend upon any further movements in the wheat price and the timing of bread price increases.
“Our group-wide cost reduction programmes are on track to deliver the full-year savings anticipated at the start of the year. We therefore expect to maintain our business momentum.”
Premier made a recommended offer to acquire 100% of RHM on 4 December, in a deal that would create the UK’s largest food company. Existing RHM shareholders would hold approximately 41% of the enlarged Premier, the companies said last week.
