Premier Foods lifts annual profit outlook

Mr Kipling owner Premier Foods upgraded its full-year profit expectations on Tuesday as it pointed to a continued strong performance.

The company said it has continued to trade strongly in recent weeks, bringing the momentum it delivered in the third quarter into the final quarter of the year. As a result, it now expects fourth-quarter revenue to be at least 10% ahead of the prior year.

Premier said the grocery division continues to lead the way, with broad based growth and further market share gains, while the sweet treats business has demonstrated "an improving trend". The international segment will deliver another quarter of strong sales growth, it added.

The company - which also owns Bisto and Oxo, among other brands - said trading profit and adjusted pre-tax profit for this year are set to be ahead of the board's initial expectations at around £155m and £135m respectively. This equates to growth of around 10% on the previous year.

Net debt is forecast to be broadly in line with last year and the board's expectations.