Premier Foods, the parent company of Mr Kipling and Bisto, has reported a rise in sales in the first half of the year as more consumers opt to stay in rather than eat out.
The group which also makes OXO cubes, revealed sales went up by 6.2% in the half year to 1 October to £419 million, from £394 million a year ago.
Adjusted pre-tax profits increased from £42 million last year to £47 million this year, it revealed.
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Premier Foods, which saw strong sales across its cakes and grocery ranges, said it was benefiting as people eat out less amid the cost-of-living crisis.
It added that annual price increases will be made in the fourth quarter of the year, which the group expects to further make up for inflated costs.
The company added that it will also launch a campaign encouraging people to cook and prepare affordable meals at home for just £1 a serving.
“The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough,” Premier Foods’ CEO Alex Whitehouse said.
“With people starting to eat out less, they often find the best restaurant in town is at home, where you can make nutritious and tasty meals more affordably.
“In this environment, our portfolio of brands continues to display strong momentum and are well placed to deliver further growth.”
“We continue to see further input cost inflation, which we expect to recover through a combination of cost savings and our annual price increase in quarter four this year.”
The news comes as the FMCG giant launched its new partnership with FareShare in a bid to tackling food waste and supporting those in food poverty.
The new five-year partnership will see Premier Foods providing food donations directly to FareShare, which will be redistributed to nearly 9,500 charities and community groups in its network. The company will also offer funding, enabling the charity to redistribute food across its network of 31 warehouses across the UK.
