(Alliance News) - Premier Foods PLC on Wednesday said it profited from people buying more food in stores instead of eating out at restaurants.
Premier Foods is a St Albans, Hertfordshire-based food manufacturer. It creates products for brands including Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr Kipling, Oxo and Sharwood's.
The company said pretax profit in the half-year that ended October 1 rose 37% to GBP42.1 million from GBP30.7 million a year prior. Revenue grew 6.2% to GBP418.6 million from GBP394.1 million.
Costs of sales rose 6.5% to GBP274.3 million from GBP257.5 million, while administrative costs increased by 26% to GBP32.5 million from GBP25.7 million.
The company declared an interim dividend of 1.2 pence per share, up 20% from 1.0p.
"The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough. With people starting to eat out less, they often find the best restaurant in town is at home, where you can make nutritious and tasty meals more affordably. In this environment, our portfolio of brands continues to display strong momentum and are well placed to deliver further growth," said Chief Executive Officer Alex Whitehouse.
Looking ahead, Premier sees itself on track to deliver full-year expectations. Regarding rising costs, the firm said it anticipates a recovery through a combination of cost savings and price increases.
Premier Foods shares were down 1.0% to 109.93 pence each in London on Wednesday morning.
By Tom Budszus; tombudszus@alliancenews.com
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Premier Foods (PFD)