Britain's Premier Foods reported a 14.4% jump in third-quarter sales, citing strong festive demand for its products ranging from Mr Kipling 'Best Ever' signature mince pies to Bisto Best meat-free gravy.
The company, which makes a variety of products from plain flour to cooking sauces and quick meals, has benefited from consumers choosing to entertain at home rather than going to restaurants amid a cost-of-living squeeze.
Premier Foods said its grocery sales increased 11.9%, sweet treats sales grew 21.3%, and international sales were up 11%, with strong performances across strategic markets.
An analyst note from Shore Capital described the performance of its brands across the flavourings and seasonings category during the festive period as 'very impressive' as both core and new lines were boosted by further distribution gains.
Promotional Prices
In November, the company said it had seen some input costs start to soften and that it would lower promotional prices across its major brands.
"The lower promotional price points we introduced in the third quarter have positively impacted performance while also helping consumer budgets go further," said chief executive officer Alex Whitehouse.
"These lower prices will be extended to additional products such as Loyd Grossman cooking sauces and Mr Kipling Bakewell slices in quarter four."
Premier Foods said it was on track to deliver its profit expectations for the full year, which is expected to be 10% ahead of the previous financial year.
In November of last year, the company had forecast higher annual profit, after first-half earnings rose on the back of strong performance of its sweet treats and grocery segments.
News by Reuters, additional reporting by ESM.
