(Alliance News) - Premier Foods PLC on Thursday said profit for the full-year will be at the top end of market expectations after reporting double-digit sales growth in the first quarter of its financial year.
Premier Foods is a St Albans, Hertfordshire-based food manufacturer. It creates products for brands including Ambrosia, Batchelors, Bisto, Mr Kipling, Oxo and Sharwood's.
In the thirteen weeks to July 2 - the first quarter of the financial year ending April 2, 2024 - sales grew by 21% to GBP231.1 million from GBP190.8 million a year prior. This was driven by brand investment, product development and in-store activation across its Grocery, Sweet Treats and International divisions, Premier Foods explained.
The Grocery division delivered sales of GBP171.5 million, up 27% from GBP135.4 million during the same period a year prior. The Sweet Treats division accounted for GBP59.6 million in sales, up 7.6% from GBP55.4 million the year before.
International sales rose by 14%, due to strong performance in Australia, where Mr Kipling delivered a "record market share" during the first quarter.
Looking ahead, revenue growth in the Grocery division to moderate in the next two quarters, Premier Foods said, but "the trajectory for Sweet Treats is expected to build through the second half of the year".
Premier Foods said it expects trading profit for financial 2024 to be at the top end of market expectations of GBP162.0 million to GBP165.4 million. This would be up from GBP157.5 million in financial 2023.
Chief Executive Officer Alex Whitehouse said: "We believe the recent period of significant input cost inflation is now past its peak and have no further price increases planned for the rest of 2023."
Shares in Premier Foods were up 1.9% at 130.00 pence each in London on Thursday morning.
By Sabrina Penty; Alliance News reporter
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Premier Foods (PFD)