Premier Foods backs FY expectations as Q1 sales rise

(Sharecast News) - Mr Kipling and Oxo owner Premier Foods said on Wednesday that it was firmly on track to meet full-year expectations as it posted a jump in first-quarter revenues. In the 13 weeks to 2 July, group revenue rose 6% on the same period a year ago.

Grocery sales were 6.3% higher in the quarter, with branded sales up 4.5%. Premier Foods said Batchelors and Nissin performed particularly well, with good value meal solutions proving increasingly popular amid the cost-of-living crisis.

Sales in Sweet Treats rose 5.1%, with branded sales up 3.3% and non-branded sales 26.8% higher than a year earlier. It was a strong quarter for Cadbury cake, while Mr Kipling sales were higher despite timing changes to promotional activity.

International sales were up 12% in the quarter. Australia delivered a "very strong" performance, with Mr Kipling recording its highest ever market share. In Canada and Europe, meanwhile, Sharwood's successfully increased distribution in major national retailers, while in Ireland, there was strong growth in sales of Nissin noodles.

The company said it continued to make market share gains, both in store and online.

Chief executive Alex Whitehouse 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."