Premier Foods has reported a rise in half-yearly adjusted profit thanks to strong demand for its cakes and grocery products, while flagging further price pressures amid surging inflation.
"We continue to see further input cost inflation, which we expect to recover through a combination of cost savings and our annual price increase in the quarter four this year," chief executive Alex Whitehouse said.
Britain's grocery sector has come under pressure this year from a deepening costs-of-living crisis and food supply disruptions caused by the war in Ukraine. Surging prices have caused the biggest squeeze on UK household income since at least the 1950s.
Premier Foods said adjusted profit before tax rose nearly 12% to £47 million (€53.8 million) in the six months ended October 1.
Rise In Half-Year Revenue
The maker of Mr Kipling cakes, Bisto gravy and Oxo stock cubes reported a 6.2% rise in half-year revenue and said it was on track to deliver full-year expectations.
The group said that its branded growth model delivered 5.0% average UK branded revenue growth over the last three years.
International revenue was up 11%, with 'broad based growth' reported in target markets, it added.
Economic Climate
"The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough," Whitehouse added.
"With people starting to eat out less, they often find the best restaurant in town is at home, where you can make nutritious and tasty meals more affordably. In this environment, our portfolio of brands continues to display strong momentum and are well placed to deliver further growth."
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