21st Jan 2025 08:43
(Alliance News) - Premier Foods PLC on Tuesday said trading over Christmas was strong, led by growth in brands such as Mr Kipling cakes.
The St Albans, Hertfordshire-based maker of branded and non-branded food, also owner of Homepride cooking sauces and Oxo stock cubes, now expects trading profit towards the upper end of financial 2025 expectations.
A company compiled consensus for trading profit for the financial year to March 29 is between GBP180.1 million to GBP186.4 million. This would be up from GBP179.5 million in financial 2024.
Chief Executive Officer Alex Whitehouse said: "We are pleased to report another very good quarter of volume-led branded revenue growth, accompanied by further market share gains, as our branded growth model continues to deliver well for us."
In response, shares in Premier Foods were 5.8% higher at 189.40 pence each in London on Tuesday morning.
Premier Foods said grocery sales rose 2.2% to GBP254.7 in the 13 weeks to December 28 at constant currency from GBP249.6 million a year prior. Branded revenue increased 3.5% to GBP232.4 million from GBP225.0 million. Non-branded fell 9.2% to GBP22.3 million from GBP24.6 million.
Sweet Treats reported strong volume-led branded revenue growth of 8.9% in the quarter with both Mr Kipling and Cadbury contributing to this progress, growing faster than the market.
Premier Foods said Mr Kipling sold 20% more mince pies this year.
The overseas businesses enjoyed another quarter of progress with sales up 29% and double-digit growth in all target regions.
New Categories sales increased 38%, led by Ambrosia porridge pots.
Whitehouse added: "Earlier this year, we said that consumers are starting to trade up and treat themselves more. This has continued over Christmas with our premium ranges such as Ambrosia Deluxe desserts, Bisto Best gravy and Mr Kipling Signature Brownie Bites performing strongly and we more than doubled the sales of our Mr Kipling Signature mince pies."
The acquired brands The Spice Tailor and FUEL10K both delivered double-digit revenue growth, the firm added.
Looking further ahead, the company expects to deliver further progress against its growth strategy, with sales trends to be more balanced between volume and price.
By Jeremy Cutler, Alliance News reporter
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