News
Revenues rise at Premier Foods as branded demand grows during H1
The firm’s H1 results revealed that this growth in sales was largely driven by a strong performance from its branded portfolio of products, where headline revenue rose 6.8%.
This translated to headline trading profit growth of 5.5% year-on-year and an increase to adjusted profit before tax of 8.9%.
Meanwhile, Premier Foods enjoyed double-digit branded volume growth across both the grocery and sweet treats categories.
The group owns well-known brands such as Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr Kipling, OXO and Sharwood’s.
‘Proven branded growth model’
Responding to positive financials, Premier Foods chief executive Alex Whitehouse said that the firm was “delighted” and pointed to the success of its “proven branded growth model” and promotional pricing strategy.
“We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands from own label,” added Whitehouse.
“Our innovation programme continues apace as we brought many new products to market in the period, including Sharwood’s curry kits, Mr Kipling Loaf cakes and Loyd Grossman Pesto.”
Whitehouse also noted how falling inflation has led to consumers feeling more confident and opting for branded products rather than private label alternatives.
“We’ve seen consumers treat themselves more, helping sales of both Mr Kipling Signature Bites and Ambrosia Deluxe more than double in the first half of the year,” he continued.
Projecting ahead, Whitehouse trailed “exciting” plans for the second half of the group’s fiscal year.
“Our best ever Mr Kipling Signature mince pies [will benefit] from expanded distribution,” he said.
“With this, and our continued branded momentum, we are on track to deliver on expectations for the full year. As we look further ahead, we expect revenue growth to continue to be generated from our strategic priorities of growing our UK branded core, extending into new categories, overseas expansion and M&A activity.”
In other news, Samworth Brothers has been fined £1.28m after an employee was killed in the loading bay of a facility operated by the food manufacturer.
