Yahoo Finance Sales rise at Mr Kipling maker due to home cooking and higher prices
The food firm behind Mr Kipling and Ambrosia reported a jump in sales over the past three months as it was buoyed by price rises and increased home cooking.
Premier Foods said group sales rose by 6% to £197 million over the three months to July 2, compared with the same month last year.
The company, which also owns brands such as Batchelors and Oxo, said it is “firmly on track to deliver full year expectations” as a result of recent trading.
Sales in the group’s core grocery division increased by 6.3% over the quarter, with Batchelors and noodle brand Nissin performing “particularly well”.
It said the brands were “increasingly popular as household budgets become ever stretched”.
Premier said sales volumes were “slightly lower” in the grocery division as growth was driven by higher pricing as the business sought to offset rising costs.
Elsewhere, its Sweet Treats division which includes Mr Kipling reported 5.1% growth.
Its licensed Cadbury cake business “enjoyed a strong quarter”, while the firm also saw a jump in non-branded sales, after securing new contracts.
Group international sales lifted by 12% as it was buoyed by a strong performance in Australia.
Alex Whitehouse, chief executive of the group, said: “We have made good progress in recovering our input cost inflation through a range of measures, including cost efficiencies and pricing, and we continue to monitor the situation closely.
“Consumers are increasingly looking to cook tasty, affordable meals at home; this fits well with our broad portfolio of brands and was illustrated by the strong performance of Batchelors and Nissin in the quarter.
“With this positive trading momentum behind us, we remain firmly on track to deliver our expectations for the year.”
