British pickle-maker Premier Foods said on Tuesday it had increased operating profit by 18.2 percent in 2005 on sales boosted 6 percent by three major acquisitions.
Premier said that in a year in which it sold its tea business and acquired the Bird's, Quern and Cauldron brands, like-for-like grocery sales were up 1.6 percent. Operating profit was 95.3 million pounds ($167.6 million), compared with 80.6 million in 2004, and sales were 789.7 million pounds, said the maker of Cranston Pickle and Ambrosia custard.
Last October, Premier sold its tea business, including its flagship Typhoo brand, to India's Apeejay Surrender Group for 80 million pounds.
Premier bought vegetarian food firms Cauldron Foods in November and Quern in June, and in February it bought one of Britain's oldest grocery brands, Bird's.
"The integration of these businesses has gone well and the brands have performed in line with our expectations," it said on Tuesday. Like-for-like grocery trading profit was up 5.4 percent to 94.9 million pounds and up 9.3 percent if the cost of launching Cranston Beans is discounted.
"As previously indicated, our potato business has suffered as customers have rationalised their supplier base but we have taken decisive action to cut the cost base," said Premier.
"Overall trading performance for the year to date has been in line with expectations," it added. The final dividend was 9.5 pence, making a total dividend for the year of 14.25 pence a share.
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