Half year results for the 26 weeks ended 2 October 2021
Headlines:
Compared to 2 years ago
- Q2 Group revenue up +8.5%, Q2 branded revenue ahead +13.3%
- H1 Branded revenue up +11.4% reflecting strength of Group’s branded growth model
- Trading profit +13.1% ahead
- Adjusted profit before tax £46.4m, up +46.3% due to trading performance and significant interest cost savings
- Statutory profit before tax £30.7m, up +104.7%
- Net debt substantially lower than FY19/20 H1 at £345.0m
Compared to 1 year ago
- Q2 Group revenue up +0.4%, Q2 branded revenue ahead +2.1%
- H1 Branded revenue (6.1%) lower than prior year due to lapping effect of exceptional pandemic related volumes
- Statutory profit before tax down (39.2%); Hovis disposal gain in prior year
- Net debt £58.1m lower than FY20/21 H1
- Combined pensions surplus of £607.7m, £67.8m higher than six months earlier
Alex Whitehouse, Chief Executive Officer
“We have delivered a very good first half performance, with revenue growth ahead of expectations; quarter two was particularly strong, with revenue growth of +8.5% vs two years ago. Our brands have performed especially well with growth versus two years ago of +11.4% and increased market share in both Grocery and Sweet Treats, illustrating the continued success of our branded growth model. I am particularly pleased with how well the business is successfully navigating the widely reported industry wide challenges including logistics, labour shortages and input cost inflation to deliver such a strong set of results, which again underlines the robustness of our operating capabilities.
“Adjusted profit before tax increased by +46% vs two years ago benefiting from both the trading performance and significantly reduced interest costs following the completion of our earnings enhancing refinancing earlier in the year. Net debt is more than £50m lower than this time last year.
“As we look ahead to the second half of the year, we will be launching a range of insight driven new products and supporting six of our key brands with advertising. We will expand our presence in adjacent new categories, building on the initial success of Cape Herb and Spice and Oxo Rubs & Marinades, as well as bringing to market premium Mr Kipling biscuits and a range of branded Ice cream. We will also continue to develop our overseas businesses including the full rollout of Mr Kipling in Canada and the test launch of Mr Kipling in the USA.
“We enter the second half of the year with strong momentum, and with a series of exciting plans in place for our brands, we remain firmly on track to deliver on our profit expectations for the full year.”