Premier Foods profit climbs as sharper prices drive growth

Premier Foods Mr Kipling
FinanceFMCGNews

Premier Foods profits jumped in the first half of the year as the Mr Kipling owner delivered double-digit volume growth.

In the 26 weeks to 28 September, the British food manufacturer’s adjusted pre-tax profit rose 8.9% to £61m, while headline sales increased 4.6% to £498.7m.

Meanwhile, UK branded sales rose 5.6%, with volumes up due to “strong innovation and sharper promotional pricing”, according to Premier Foods.

Total grocery branded sales grew 7% and sweet treats branded sales were up 6.5%, both of which also experienced double-digit branded volume growth over the period.


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Premier Foods chief executive Alex Whitehouse said: “We’ve delivered another really strong branded performance in the first half, underpinned by double-digit volume growth. This demonstrates the success of our proven branded growth model which was also supported by sharper promotional pricing.

“We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands from own label. Our innovation programme continues apace as we brought many new products to market in the period, including Sharwood’s curry kits, Mr Kipling Loaf cakes and Loyd Grossman Pesto.”

Over the half, products including Mr Kipling Signature Bites and Ambrosia Deluxe saw sales more than double as inflation began to ease.

The group said that with “a strong plan in place for further branded growth”, it is on track to deliver on expectations for the full year.

Whitehouse added: “As we look to the second half, we have exciting plans in place across all our brands, with our best ever Mr Kipling Signature mince pies benefitting from expanded distribution.

“As we look further ahead, we expect revenue growth to continue to be generated from our strategic priorities of growing our UK branded core, extending into new categories, overseas expansion and M&A activity.”

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Premier Foods profit climbs as sharper prices drive growth

Premier Foods Mr Kipling

Premier Foods profits jumped in the first half of the year as the Mr Kipling owner delivered double-digit volume growth.

In the 26 weeks to 28 September, the British food manufacturer’s adjusted pre-tax profit rose 8.9% to £61m, while headline sales increased 4.6% to £498.7m.

Meanwhile, UK branded sales rose 5.6%, with volumes up due to “strong innovation and sharper promotional pricing”, according to Premier Foods.

Total grocery branded sales grew 7% and sweet treats branded sales were up 6.5%, both of which also experienced double-digit branded volume growth over the period.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


Premier Foods chief executive Alex Whitehouse said: “We’ve delivered another really strong branded performance in the first half, underpinned by double-digit volume growth. This demonstrates the success of our proven branded growth model which was also supported by sharper promotional pricing.

“We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands from own label. Our innovation programme continues apace as we brought many new products to market in the period, including Sharwood’s curry kits, Mr Kipling Loaf cakes and Loyd Grossman Pesto.”

Over the half, products including Mr Kipling Signature Bites and Ambrosia Deluxe saw sales more than double as inflation began to ease.

The group said that with “a strong plan in place for further branded growth”, it is on track to deliver on expectations for the full year.

Whitehouse added: “As we look to the second half, we have exciting plans in place across all our brands, with our best ever Mr Kipling Signature mince pies benefitting from expanded distribution.

“As we look further ahead, we expect revenue growth to continue to be generated from our strategic priorities of growing our UK branded core, extending into new categories, overseas expansion and M&A activity.”

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