Mr Kipling mince pies deliver biggest-ever quarter for Premier Foods
Mr Kipling remains the star seller for owner Premier Foods in both the UK and Australia, with mince pies and Brownie Bites more than doubling sales over Christmas.
Premier Foods subsequently said it expected profit to be at the upper end of expectations – £180.1m to £186.4m – this year. Its share price rose by nearly six per cent in early trades.
Overall sales at Premier foods rose 3.1 per cent year on year in the thirteen weeks ended December 28, while Sweet Treats Branded sales – which includes Mr Kipling – rose 8.9 per cent.
Overseas, sales rose 29 per cent, with “double-digit growth in all target regions”, Premier Foods said.
Particular winners were Mr Kipling in Australia and meal kit The Spice Tailor in Canada, with the latter supported by Diwali.
Premier Foods said that sales across the board had been boosted by an increasing tendency for customers to trade up and treat themselves.
Chief executive officer Alex Whitehouse said: “We are pleased to report another very good quarter of volume led branded revenue growth, accompanied by further market share gains, as our branded growth model continues to deliver well for us.”
“Our acquired brands, The Spice Tailor and FUEL10K, both delivered double digit sales growth, as we leverage our product innovation capabilities and commercial relationships to unlock their potential.
“Ambrosia porridge pots and Cape Herb & Spice were standout performers of the 38 per cent growth in new categories in the quarter, while all our target overseas regions delivered further strong progress as International sales increased 29 per cent.”
“Having delivered very good volume led, branded revenue growth in our key third quarter, we’re now guiding Trading profit to the upper end of expectations for this financial year. As we look to the rest of FY24/25 and to the medium term, we expect to deliver further progress as we continue to execute against our five pillar growth strategy.”
Premier Foods’ share price has risen by 27.6 per cent in the past year, but has fallen 4.7 per cent month on month after a dip mid-Janaury.