Premier Foods, the UK food manufacturer, is mulling the sale of its Ambrosia custard and desserts brand as it continues to look at ways of reducing its debt burden.
The company made the announcement as it reported a statutory loss after tax of £700,000 ($910,000) for the first half of its financial year, despite growing revenue by 1.3% and seeing trading profit increase by 6.2%.
The Ambrosia brand range includes canned and frozen custard, canned rice pudding and chilled rice and custard desserts.
Commenting on the move, Premier Foods CEO Gavin Darby said: “While we are committed to our strategy of improving operating performance and targeting a Net debt to EBITDA ratio below 3.0x by March 2020, we are also working in parallel to identify other strategic opportunities to accelerate the Company’s turnaround”.
“The Board has determined that it should focus resources on areas of the business which have the best potential for growth through accelerated investment in consumer marketing and high return capital projects”, he added. “Accordingly, we are pursuing options to fund these plans as well as delivering a meaningful reduction in Net debt, through discussions with third parties regarding the potential disposal of our Ambrosia brand”.