LONDON – Premier Foods, the company behind popular brands such as Bird’s, Bisto, and Mr Kipling, is forecasting a 10% increase in trading profit for the fiscal year 2023-24, surpassing analysts’ expectations even as consumers grapple with a cost-of-living crisis. The company’s strategic approach and focus on branded revenue growth have led to significant market share gains and a robust financial performance.
The British food manufacturer has capitalized on falling input costs to offer lower promotional prices on its products, which has driven strong sales across its sweet treats and grocery segments. As a result, Premier Foods has seen an impressive 113 basis point increase in market share within the grocery sector.
For the half-year period ending on September 30, the company reported a substantial 21.2% increase in adjusted profit before tax, reaching £56.9 million (€65 million). This performance was supported by headline sales that jumped from last year’s £406.5 million to £484.4 million this period. Statutory revenue also saw a rise from £419.9 million to £494.1 million.
Premier Foods’ CEO Alex Whitehouse attributed this strong start to the year to strategic advancements and the company’s ability to navigate market challenges effectively. Whitehouse also highlighted the successful acquisition of breakfast brand FUEL10K and the notable performance of The Spice Tailor.
Encouraged by these positive results and a promising start to Q3, Premier Foods has raised its profit expectations for FY23/24. This optimistic outlook comes as a beacon of resilience amidst an environment where many consumers and businesses are facing financial pressures due to rising living costs.
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