Mr Kipling and Ambrosia maker Premier Foods saw sales of its brands top £1 billion last year as its "premiumisation strategy" helped lift volumes.
Excluding disposals, total headline revenue grew 3.5 per cent to £1.15bn over the year to 29 March, driven by branded revenues, which grew 5.2 per cent to £1.01bn. Non-branded revenue slid 7.2 per cent to £139.7bn, partly as a result of contract exits and lower volumes.
Total headline grocery branded revenue is up by 4.6 per cent while sweet treats branded revenue up by 7.3 per cent.
Alex Whitehouse, Chief Executive Officer, said, “The business has delivered another strong year, with branded revenue growth up 5.2 per cent, exceeding £1 billion, and driven by particularly good volumes which resulted in us taking further market share.
With this strong branded performance, Trading profit grew 6 per cent compared to last year, exceeding our previously raised expectations.
“Our premiumisation strategy continues to be highly relevant, reflecting the trend for consumers to trade up and treat themselves to ranges such as our Ambrosia Deluxe and Mr Kipling Signature Bites, both of which delivered very strong revenue growth this year.
"Our Nissin noodles again achieved double-digit sales growth, taking yet more market share and benefitted from the addition of big pots and Demae Ramen to the range.
“In addition to the strong financial performance, we have also made progress against all the pillars of our growth strategy; we significantly increased capital investment in our manufacturing sites this year, delivering improved efficiencies and providing the platform for future growth.
Our revenue in new categories rose by 46 per cent, led by Ambrosia porridge pots and we also grew our overseas businesses by 23 per cent. Additionally, and as we apply the benefits of our branded growth model, our acquired brands, The Spice Tailor and FUEL10K, both delivered double-digit sales growth this year and remain well-set for significant future growth.
“We have now reduced our leverage to below 1x adjusted EBITDA, reflecting the strong cash generating capacity of our business and the suspension of pension deficit contribution payments. We are one step further towards the full resolution of the pension scheme and with the removal of the dividend match we are stepping up our distribution to shareholders this year with a 62% increase in the dividend.”
“As we look ahead to the coming year, we expect revenue growth to be supported by a strong product innovation programme and our expectations for Trading profit growth are unchanged.
"In line with our capital allocation framework, we will continue to invest in projects to both increase efficiencies and automation and facilitate growth through product innovation and capacity while we also remain focused on pursuing M&A opportunities where we can add value to brands through the application of our branded growth model.”
