Premier Foods PLC (LON:PFD) posted a rise in sales in its third quarter, fueled by strong performance at its grocery division, as a cost-of-living crisis in Britain led to more shoppers cooking at home over the holiday season.
Total group sales at the food manufacturer known for brands like Mr Kipling cakes and Bird’s custard jumped by 12% during the thirteen weeks ended on December 31.
Premier Foods’ grocery business saw top-line growth of 17.4%, as demand for the firm’s biggest brands remained “buoyant” in the festive period despite higher prices for items. Non-branded sales also grew by 29.6%.
“These results illustrate the continuing appeal of our portfolio of market-leading brands in such a challenging environment and demonstrate the strength and resilience of our branded growth model,” said Chief Executive Officer Alex Whitehouse in a statement.
However, he warned that pressure from input cost inflation remains, but said the company will “continue to take action” against this trend through measures like expense reductions and annual price increases.
Looking ahead, Premier Foods reiterated its full-year financial expectations and said it expects to make “further significant strategic progress” in the medium term.