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Branded sales at Premier Foods (PFD) have showed their fourth successive quarter of sequential improvement, but overall full-year revenues fell 4.5% as the tough market conditions persisted.

Pro forma total sales (stripping out Premier’s accounting period change and business disposals) for the 52 weeks ended 4 April 2015 were £767.4m compared to £803.3m for the prior year.

In its fourth quarter, total sales were 0.6% lower than the comparative period at £186m, while branded sales were broadly flat and “power brands” sales were 1.6% lower. For the full year period branded sales were down 4.1%.

Trading profit for the year was in line with expectations at £131m, though it recorded a £92.7m loss after tax due to impairment charges – notably an impairment of goodwill of £67.9m in respect of its Sweet Treats business.

Chief executive Gavin Darby said: “Across our branded portfolio, we have delivered volume and value share gains, while we have driven growth in our cake and flavourings & seasonings categories.

“While it is encouraging to note the return of volume growth to both our categories and the wider grocery market, we expect the near term trading environment to be challenging, and our expectations for the year are unchanged. I remain confident that our strategy of investing in brands, innovation and infrastructure is the right one for Premier Foods, and see increasing evidence that our efforts are starting to pay off.”

Also of note was Premier’s improved position on its pension deficit, which reduced to £211.8m from £603.3m last year.

Morning update

Ready meals and sandwich group Greencore (GNC) shrugged off the tough grocery market conditions to report a 3.2% revenue rise in the six months to 27 March.

Reported group revenue increased by 3.2% to £639.8m, with like for like revenue growth in convenience foods of 4.9%. Food to go was a standout performer for the group, rising 7% in the UK and 8.7% globally during the period, while its prepared meals business grew by 2.4% in the UK.

Greencore stated: “The UK grocery retail environment remains difficult with profound changes taking place amongst our customers, together with net price deflation. Our business has continued to trade well despite these challenges given its focus on convenience offerings which continue to exhibit volume growth.”

Operating profit of £40.1m increased by 7.8% versus same period in 2014, driven by the increase in revenue, continued operational improvements and focus on cost control.

Chief executive Patrick Coveney said: “The group has stepped up its capital investment programme in new sites, which will provide a solid platform for growth in the months and years ahead. We carry good momentum into the second half and remain confident in our ability to deliver adjusted EPS growth for the year in line with market expectations.”

Elsewhere, Unilever (ULVR) has named a new chief financial officer. Current CFO Jean-Marc Huët, who joined Unilever in January 2010, will leave Unilever on 1 October 2015. He will be replaced by by Graeme Pitkethly, who is currently executive vice president of the Unilever UK and Ireland business.

Joining the firm in 2002, Pitkethly has held a number of financial roles within Unilever, including head of M&A, head of treasury, pensions and tax and CFO of Unilever Indonesia.

Chief executive Paul Polman said: “[Jean-Marc Huët ] has played an important role in helping to steer Unilever through one of its most successful periods. Importantly, he has helped to build and strengthen Unilever’s standing with the financial community and has spent considerable time in developing a strong internal talent pipeline, which is today reflected in the appointment of Graeme Pitkethly. He leaves Unilever with the Group in sound financial health and with the Finance function significantly revitalised.”

On the markets this morning, strong overnight trading in the US and Asia helped the FTSE 100 jump 0.5% to go back above the 7,000pts mark at 7,005.3pts this morning.

Premier Foods was relatively flat at 0.2% down to 46.8p, while Greencore jumped 1.8% to 354.9p. Early risers include the tobacco firms, with Imperial Tobacco (IMT) 1% higher at 3,253p and British American Tobacco (BAT) up 1.3% to 3,643.5p.

Yesterday in the City

Mixed economic numbers from the US and the expectation that the UK could officially slip into negative inflation this week led to a subdued day in the City yesterday.

The FTSE 100 edged up 0.1% to 6,988.9pts, but Marks & Spencer (MKS) was one of the day’s stand-out performers as the market drove up the retailer ahead of its annual results tomorrow. M&S was up 2.3% to 581p on expectations of its first rise in annual profits for four years.

Coca-Cola HBC (CCH) continued from its strong showing on Friday, rising another 2% to 1,419p and investors reacted to the departure of Thorntons (THT) boss Jonathan Hart by sending the chocolatier up 4.1% to 98.9p.

Finsbury Foods (FIF) was also on the up, rising 4.4% to 83.5p, but Cranswick (CWK) fell 2.3% after announcing its annual results yesterday where revenues topped £1bn for the first time. Despite yesterday’s fall, Cranswick is trading near annual highs, having hit an all-time share price high on Friday.

Other significant fallers included Tesco (TSCO), which slipped 1.1% to 222.1p.

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