Premier Foods Sees Profit Increase as Higher Prices Drive Growth

Premier Foods, the owner of Mr Kipling, reported a strong profit increase in the first half of the year, driven by higher prices and innovative product launches.

For the 26 weeks ending 28 September, the British food manufacturer posted an 8.9% rise in adjusted pre-tax profit to £61 million, while headline sales grew by 4.6% to £498.7 million. UK branded sales saw a 5.6% increase, supported by double-digit volume growth due to “strong innovation and sharper promotional pricing.”

Total grocery branded sales climbed 7%, and sweet treats branded sales rose by 6.5%, both achieving double-digit branded volume growth over the period.

CEO Alex Whitehouse commented:
“We’ve delivered another really strong branded performance in the first half, underpinned by double-digit volume growth. This demonstrates the success of our proven branded growth model, supported by sharper promotional pricing.

“We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands from own-label options. Our innovation programme has been key, with new products like Sharwood’s curry kits, Mr Kipling Loaf Cakes, and Loyd Grossman Pesto driving growth.”

The launch of products such as Mr Kipling Signature Bites and Ambrosia Deluxe helped sales more than double in certain categories as inflation pressures eased.

Premier Foods plans to continue its momentum into the second half, with a focus on branded growth and festive product expansions, such as its widely distributed Mr Kipling Signature Mince Pies.

Looking ahead, the company aims to sustain revenue growth through strategies like expanding its UK branded core, entering new categories, overseas growth, and mergers and acquisitions.