Premier Foods lifts profit guidance after strong first half

Premier Foods has raised its full-year profit expectations on Thursday following a strong first-half performance.

The group reported a 19 per cent increase in trading profit and 19.2 per cent increase in headline revenue for the 26 weeks ended 30 September.

The maker of Mr Kipling cakes, Oxo cubes and Bisto gravy granules has seen revenue increasing by 15.8 per cent in the branded category, while total headline grocery revenue was up by 24.6 per cent, gaining 113 basis points of market share in its grocery categories.

New categories revenue increased by 21 per cent, driven by Ambrosia porridge pots, and the international business grew by 19 per cent, with Mr Kipling building distribution in the US and taking further market share in Australia.

“We’ve had a really good start to the year, making strong progress against all our strategic pillars. This performance once again demonstrates the power of our branded growth model and the capabilities of our team,” Alex Whitehouse, chief executive, said.

Whitehouse added that the company has lowered promotional prices across a number of major branded products such as Batchelors Super Noodles and Mr Kipling Slices as the rate of input cost inflation has begun to fall.

The group said it has made a good start to its third quarter, and now expects trading profit this financial year to be in the region of 10 per cent ahead of last year.

“With a strong first half behind us, a good start to quarter three and exciting plans for the rest of the year, we are again raising our trading profit expectations for FY23/24, following our previous upgrade earlier this year,” Whitehouse said.