Premier Foods has posted sales growth of 4% in the third quarter of its financial year, with revenue reaching £261.4 million.
The UK-based company, which produces brands such as Batchelors, Bisto and Mr Kipling, reported that branded sales were 0.7% higher than the same period last year.
However, sales of non-branded products saw strong growth of 17%.
The group says that these results reflect 'the robust performance' of the UK food market and the strength of the company's strategic partnerships.
"Our international business produced another excellent quarter and our partnerships with Nissin and Mondelez International continue to deliver strong performances, demonstrating their strategic benefits to us," said Gavin Darby, chief executive of Premier Foods.
"With our leading category positions and commitment to product innovation, our expectations for progress this year remain unchanged.”
'Mixed Bag'
In Premier Foods' grocery business, sales were up by 4.8%, with growth in the branded (+3.4%) and non-branded (+13.9%) parts of its portfolio.
In particular, Batchelors delivered its fourth successive quarter of sales growth through the group's partnership with Nissin, and the launch of the Super Noodles pot format.
Sales of Bisto and Oxo were both up in the quarter, while Angel Delight, Sharwood's and Homepride also delivered growth.
The company's sweet treats segment saw growth of 2.2% In this segment, branded sales fell by 7.3%, while non-branded sales climbed 19.6%.
Sales of Cadbury and Mr Kipling cakes continued to growth in international markets, but were lower in the UK during the most recent quarter.
Clive Black, head of research at Shore Capital, said that these results represent "a mixed bag" for Premier Foods.
"Overall revenue growth is good, sustaining the better momentum recorded in Q2," he said. "However, the mix of sales is perhaps a little more mellow, noting that private label drove the top-line."
Batchelors Sale
Yesterday, Premier Foods responded to speculation that it is selling its Batchelors brand, saying that discussions have not gone 'beyond an exploratory stage'.
Over the weekend, it was reported that the brand, which includes Super Noodles and Cup a Soup, could be up for sale to the company's Japanese partner Nissin Foods.
However, the British food group stressed that it has made no changes to its strategy, but 'regularly reviews options to deliver value for all its stakeholders'
"Whilst weekend stories may, or indeed may not, be wide of the mark, we feel that new Chairman, Keith Hamill is, or at least should be, seeking to drive more meaningful change so that long suffering shareholders can benefit more from the business’ toils," added Black.
Looking ahead, Premier Foods said that it remains focused on reducing the ratio of net debt to EBITDA below three times.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.
