Premier Foods posted strong Q3 results following a successful Christmas trading period, with total revenue increasing by 4.2% to £375.1m.

The food manufacturer’s grocery-branded revenue went up by 5.8% in the quarter, to £246.2m.

Sales from new categories increased by 29%, which was driven by FUEL10K Yoghurt & Granola pots and additional distribution for Cape Herb & Spice.

Alex Whitehouse, CEO of Premier Foods said: “We had a really good Christmas with 5.2% branded revenue growth, accelerating our trend from the previous quarter.

”These results demonstrated strong delivery against all pillars of our strategy, with consumers continuing to choose our brands for their quality and value.

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“Both our Grocery and Sweet Treats businesses made strong progress in the period, and we returned to double-digit revenue growth overseas with particularly good performances in Australia and the US.”

The newly-acquired Merchant Gourmet had a strong quarter under the ownership of Premier Foods, delivering a revenue growth of 18%.

However, non-branded sales declined by 7.5% due to the planned exit of some lower-margin contracts.

The sweet treats segment reported branded revenue growth of 3.1% to £68.6m, which was driven by extensive product innovation, including Mr Kipling Cake Bites, Breakfast Bakes and Cadbury Caramel Mini Rolls.

In the non-branded sweet treats category, the business experienced a revenue growth of 2% to £39.7m.

Moving forward, the business expects trading profit for the FY25/26 to be at the upper end of market expectations.