Food producer Premier Foods is expecting upbeat results for the year after a strong Christmas performance, despite ongoing difficulties with potato subsidiary MBM.
In a statement ahead of its 2005 results, due in March, the branded goods giant said its business was well positioned for 2006, and stripping out the MBM performance, sales rose by 15 per cent over the festive season.
Strong sales of new products such as Ambrosia custard snack pots, Hartley's fruit smoothies and Branston baked beans, would ensure both operating profits and margins were in line with expectations, the company said.
Underlying sales, stripping out acquisitions and disposals, grew by just two per cent, after the inclusion of a sharp fall in revenues at MBM.
However, Premier bosses said with MBM now supplying a wider range of fresh produce and having closed four of its six packing facilities, profits at the unit were expected to recover, albeit modestly, during 2006.
