Premier Foods has no plans for price increases as cost inflation ‘now past its peak’
Mr. Kipling maker Premier Foods said that it now believes that the recent period of significant input cost inflation has “now passed its peak”, with the group no longer planning for further price increases during the year.
It comes as inflation fell to its lowest level this year of 7.9 per cent, giving shoppers hope that the cost of food may start to cool
The manufacturer said today that it expects profit to be at the “top end” of market expectations in its full-year results, as it reported strong sales in its confectionery arm.
The firm said that its sweet treats sales grew by 7.6 per cent in the first quarter. While branded sales of branded goods remained the same, non-branded sales jumped up 86.2 per cent
The high growth in non-branded sales was due to contract gains in pies and tarts and pricing benefits on existing product lines.
Overseas sales also grew 14 per cent higher in the quarter, as the group was aided by the continued roll out of Mr Kipling cake in the US, which is now supplied in over 1,400 stores.
In Australia, demand for its cakes also increased, reaching a “record” market share of 17.6 per cent.
Sales in Europe grew over 30 per cent due to increased distribution of its Sharwood’s sauces in Germany and the Netherlands as part of its European expansion plan.
“The company’s portfolio continues to demonstrate a high level of relevance to consumers in the current economic climate,” Alex Whitehouse, chief executive of Premier Foods, said.
“Following a strong first quarter, and with exciting plans behind the group’s leading brands for the remainder of the year, it now sees trading profit for FY23/24 at the top end of market expectations,” he said.
“In the medium term, the group expects to unlock further significant shareholder value through the delivery of its five pillar growth strategy, as it builds on its successful core UK business and applies this to new categories, overseas markets and inorganic opportunities,” he said.