Premier Foods posts modest revenue increase, grocery sales decline
Premier Foods reported a revenue increase of 0.3% to £240m in its first quarter, driven by a slowdown in the grocery sector because of higher temperatures.
Part of its grocery categories, such as gravy, stock, and soup, took a hit due to the warmer weather, with sales going down by 2.7% to £174.7m during the period of 13 weeks leading up to 28 June.
Alex Whitehouse, chief executive at Premier Foods, said: “We grew branded sales by another 1.2% this quarter, led by very strong volume-led growth in branded sweet treats.
“This was driven by the strength of our innovation program with new product ranges such as Mr. Kipling birthday cake tarts performing very strongly, as we brought to Britain a trend that is particularly popular in the US.
“We also continued to grow volume and value market share overall, despite the impact of recent warmer weather on some grocery categories.”
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However, this was offset by a strong performance in the sweets sector, with Mr. Kipling’s sales rising by 9.1% to £65.3m.
Its new categories, including Ambrosia Porridge pots and Cape Herb & Spice, reported a very strong performance, with sales surging by 38%. Additionally, the brands that it acquired, The Spice Tailor and FUEL10K, brought in a double-digit UK sales increase.
Its innovation on its sweet products is driving sales growth, with the Mr. Kipling Signature Brownie Bites bringing in new customers. Additionally, due to trends in the US and UK, both Mr. Kipling and Cadbury delivered a strong performance.
The company has maintained its future guidance and is confident that it will be able to keep its revenue growth throughout the year.
The British food manufacturer has been reporting consistently strong results; in May, it achieved brand sales growth of 5.2%, which exceeded £1bn.
Last year, the company’s third-quarter sales were also boosted by the sweet treats sector over the Christmas holiday period.




