Premier Foods has experienced a significant boost in profits during the first half of the financial year, largely driven by innovative strategies and aggressive pricing tactics.
In the 26-week period concluding on 28 September, Premier Foods recorded an 8.9% increase in adjusted pre-tax profit, amounting to £61 million. Concurrently, headline sales saw a rise of 4.6%, reaching £498.7 million. This growth is attributed to a 5.6% increase in UK branded sales, which is supported by strong product innovation and competitive pricing, according to company reports.
The food manufacturer’s grocery and sweet treats segments both achieved substantial growth, with branded sales in grocery climbing by 7% and in sweet treats by 6.5%. This performance was bolstered by double-digit volume growth in branded products over the period.
Alex Whitehouse, Premier Foods’ chief executive, highlighted the company’s achievements, stating, ‘We’ve delivered another really strong branded performance in the first half, underpinned by double-digit volume growth. This demonstrates the success of our proven branded growth model which was also supported by sharper promotional pricing.’
Whitehouse further explained that the company gained market share by attracting consumers from own-label products to Premier Foods’ leading brands. This shift was driven by a focused innovation programme, which introduced new products such as Sharwood’s curry kits, Mr Kipling Loaf cakes, and Loyd Grossman Pesto.
During the first half of the year, products like Mr Kipling Signature Bites and Ambrosia Deluxe experienced more than double sales as inflation pressures started to diminish. The group remains committed to a robust growth plan and is on track to meet its full-year expectations.
Looking towards the future, Whitehouse elaborated: ‘As we look to the second half, we have exciting plans in place across all our brands, with our best ever Mr Kipling Signature mince pies benefitting from expanded distribution.’ He also indicated that the company’s strategic priorities include growing its UK branded core, expanding into new categories, increasing overseas operations, and pursuing mergers and acquisitions.
Premier Foods has effectively leveraged product innovation and strategic pricing to achieve notable profit and sales growth. With ambitious plans for the future, the company is poised to maintain its upward trajectory and expand its market presence.
