Sign of the times: Super Noodles sales boost FTSE 250 outfit
Premier Foods reported stronger annual profits in its preliminary results this morning, with a 13 per cent jump in pre-tax profits for the year ending in April to £137m, as strong brand performance helped the manufacturer weather supply chain disruption and high costs.
The company, the maker of brands such as Mr Kipling, Ambrosia, Custard and Angel Delight, said that super noodles producer Batchelors had a particularly strong performance, as it became their largest grocery brand with a revenue increase of 20 per cent this year.
The Mr Kipling maker also announced that it would raise dividends by 20 per cent again this year as a result of the strong performance.
Alex Whitehouse, Chief Executive Officer, said “We are continuing to see consumers looking for convenient, affordable and tasty meal solutions and Batchelors and Nissin were two of our best branded performers in the year which benefited from this trend.
“Batchelors, well known for its tasty Super Noodles, has now become our largest Grocery brand, increasing revenues by over 20% this year.”
It comes after the company has made sweeping cost cuts over the past year, in order to tackle supply chain disruptions and high inflation.
It also slashed 300 jobs in January despite a strong Christmas performance.
Whitehouse added: “Once again, the business has delivered a year of strong performance in a challenging environment with group revenue increasing by 11.8 per cent . Our brands grew strongly, up 9.1 per cent, underpinned by our branded growth model and supported by higher pricing.”
Analysts from Shore Capital said, “Batchelors’ was the star of the Grocery show landing the No.1 spot for the Group’s strong stable of UK-centric proprietary brands tapping into current consumer behaviours.”