Britain's Premier Foods has forecast higher annual profit, after first-half earnings rose on the back of strong performance of its sweet treats and grocery segments.
The maker of Mr Kipling cakes, Oxo cubes and Ambrosia custards expects its 2023-24 trading profit to be 10% ahead of last year's £157.5 million (€179.9 million). Analysts on average had forecast about £166 million (€189.6 million), according to a company-compiled consensus.
Food Inflation Relief
Gradually cooling food inflation has brought some relief to the grocery sector at a time when consumers are keeping a tight lid on their spending due to the cost-of-living crisis.
Falling input cost inflation has helped Premier Foods lower its promotional prices across popular branded products like Batchelors Super Noodles and Mr Kipling Slices, the company said in a statement.
'A Really Good Start'
"We've had a really good start to the year, making strong progress against all our strategic pillars," commented Alex Whitehouse, chief executive. "We delivered branded revenue growth of nearly 16%, again maintained our trading profit margins and we continue to grow faster than our markets, gaining 113 basis points of share in our Grocery categories. This performance once again demonstrates the power of our branded growth model and the capabilities of our team.
"New categories revenue increased by 21%, driven by Ambrosia porridge pots and our International business grew by 19%, with Mr Kipling building distribution in the USA and taking further market share in Australia."
The company reported a 21.2% rise in adjusted profit before tax for the half year ended September 30 to £56.9 million (€65 million).
Additional reporting by ESM
