Mr Kipling owner, Premier Foods has increased its profit forecast as its grocery business ‘continues to lead the way’ in growth.

The British food manufacturers trading profit and profit before tax for this year are now expected to be around £155 million and £135 million, respectively.

As a result, this equates to growth of around 10% compared to 2022.

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This comes as Premier Foods has reported a strong trading period over recent weeks, which it claims brought the ‘momentum’ that it delivered in the third quarter of 2022 into the final quarter of the year.

It now expects revenue growth in Q4 to be at least 10% ahead of the year prior, which it attributes largely to its grocery business which has brought broad based growth and further market share gains.

Premier Foods ‘sweet treats’ category has also demonstrated an improving trend, with its international business expected to deliver another quarter of strong sales growth.

Last year saw the business acquire South East Asian meal kits and accompaniments brand, The Spice Tailor for £43.8 million, which is expected to generate revenue of £17.3 million in FY22/23.

Premier Foods’ brands McDougall’s and Hovis also introduced a line-up of wholegrain flours designed to provide healthier choices for home bakers, while a non-HFSS range of Mr Kipling cakes and pies rolled out into Tesco stores.