Mr Kipling owner Premier Foods lifts FY profit expectations

Premier Foods said on Thursday that full-year profit was set to be above market expectations after three strong quarters of trading and after the Mr Kipling brand enjoyed its "biggest ever" Christmas.

The company, which also owns brands such as Ambrosia and Oxo, now expects trading profit for this financial year to be at least £145m and adjusted pre-tax profit of at least £125m. This compares with consensus expectations of £140.7m and £119.3m, respectively.

In an update for the third quarter, Premier said trading was ahead of expectations, with "strong and broad based" branded growth across both Grocery and Sweet Treats.

Group sales rose 7% versus two years ago and 7.3% year-to-date. Branded sales rose 11.3% on a two-year basis and Premier said it significantly outperformed the market, gaining 90 basis points of value share in the period compared to last year. International sales were ahead 33%.

On the year, total group sales were down 1.8%, with branded sales 0.7% lower and non-branded sales down 6.4%.

Chief executive officer Alex Whitehouse said: "We're particularly pleased with the performance of our Sweet Treats business. This was Mr Kipling's biggest Christmas ever, as our Sweet Treats brands outperformed the market, growing 6.3% compared to last year and 11.6% versus two years ago, helped by an increased number of family gatherings over the festive period.

"Our overseas businesses performed particularly well with sales up over 30% versus two years ago as we continue to execute our expansion plans. All of our strategic international markets saw growth, with sales of Sharwood's and Mr Kipling both well ahead of the same period two years ago.

"With three strong quarters of trading now delivered and taking good momentum into the final quarter, we are increasing our profit expectations for this financial year."