Premier Foods has reported a notable increase in profits for the first half of the year, buoyed by strategic pricing and innovation efforts.
In the 26 weeks leading up to 28 September, Premier Foods, the well-known British food manufacturer, experienced an 8.9% increase in adjusted pre-tax profit, reaching £61 million. Headline sales also saw a rise of 4.6%, climbing to £498.7 million. The company attributes this growth to enhanced pricing strategies and robust innovation, which have significantly boosted branded sales volumes.
UK branded sales saw a 5.6% increase, with total grocery and sweet treats branded sales growing by 7% and 6.5%, respectively. This growth was supported by substantial branded volume increases, reflecting the company’s effective market strategy. Premier Foods indicated that this performance was driven by strong innovations and sharper promotional pricing that attracted consumers away from own-label products to its leading brands.
Alex Whitehouse, Premier Foods’ chief executive, remarked on the company’s success by highlighting the strong branded performance in the first half, underpinned by double-digit volume growth. He stated, “We gained both volume and value market share, outperforming the market as many consumers switched into our leading brands.” Whitehouse credited the innovation programme for bringing new products like Sharwood’s curry kits, Mr Kipling Loaf cakes, and Loyd Grossman Pesto to market, which contributed to the volume gains.
Over the period, products such as Mr Kipling Signature Bites and Ambrosia Deluxe achieved more than double sales as inflationary pressures began to subside. The company is confident in its strategic plan, which maintains its focus on branded growth for the remainder of the year. Alex Whitehouse noted, “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.”
Looking further ahead, Premier Foods anticipates continued revenue growth aligned with its strategic priorities, which include expanding its UK-branded core, entering new categories, overseas expansion, and engaging in mergers and acquisitions. This comprehensive approach indicates a forward-thinking strategy to sustain their market presence as the company capitalises on emerging opportunities.
Premier Foods has successfully leveraged its strategic initiatives to achieve significant profit growth, illustrating the potential of its brand-focused strategy to outperform market trends. The company’s commitment to innovation and strategic pricing is poised to drive further expansion and development in the coming months.
