Premier Foods has upgraded its full-year profit expectations after reporting growth across its branded portfolio in the first half, with Mr Kipling becoming a £200m brand for the first time.
The owner of brands including Mr Kipling, Bisto, Ambrosia and Sharwood’s said branded revenue increased by 3.2% in the 26 weeks to September 26, 2026, with growth across both its Sweet Treats and Grocery divisions.
Sweet Treats branded revenue rose 6.7%, while Grocery branded revenue increased by 2%. The group also reported further market share gains in both categories.
Mr Kipling was a particular bright spot, with revenue growing 10% to take the brand beyond the £200m mark for the first time. Premier Foods attributed the performance to its innovation programme, including launches such as Mr Kipling Custard Cream Whirls and Birthday Cake Slices. The business said Sweet Treats had now delivered 12 consecutive quarters of branded revenue growth.
Trading profit increased 2.4% to £72.2m, while adjusted profit before tax rose 3.8% to £64.7m, helped by lower interest costs. Statutory profit after tax, however, fell by £5.8m to £41m, reflecting higher restructuring costs and a lower pension credit.
Chief executive Alex Whitehouse said the group had delivered another good half-year performance, supported by its Branded Growth Model and continued market share gains.
He said some Grocery categories had been affected by prolonged periods of hotter weather, but the group's expansion into new categories, international growth and acquisitions had made the business more resilient to seasonal variations.
New categories revenue increased 15% during the period, with particularly strong performance from Cape Herb & Spice. International revenue grew 8% in the first half and 10% in the second quarter, while acquired brands The Spice Tailor, FUEL10K and Merchant Gourmet all delivered double-digit revenue growth.
The group increased capital investment by 54% to £35.9m, with further spending planned to improve manufacturing efficiency and productivity.
Premier Foods has also upgraded its full-year adjusted profit before tax and adjusted earnings per share expectations, now projecting both to be at the top end of current market expectations. Trading profit is expected to grow by around 3-5% ahead of FY25/26.
The company said the improved outlook was supported by lower financing costs following the redemption of its fixed-rate bond.
It is also introducing an interim dividend for the first time in 19 years. A payment of 1.12p per share will be made on December 18 to shareholders on the register on November 20.
Whitehouse said the group's updated capital structure provided flexibility to pursue its growth strategy, including potential acquisitions of further high-growth brands.
“With the strength of our balance sheet, we have significant firepower available to expand the size of the business through the acquisition of further, future-focused, high growth brands,” he said.
The group said it remained confident in delivering further progress over the medium term, while continuing to monitor the macroeconomic and geopolitical environment.