Mr Kipling and Ambrosia maker Premier Foods saw sales of its brands top £1bn last year as its ‘premiumisation strategy’ helped lift volumes.
Excluding disposals, total headline revenue grew 3.5% to £1.15bn over the year to 29 March, driven by branded revenues, which grew 5.2% to £1.01bn. Non-branded revenue slid 7.2% to £139.7bn, partly as a result of contract exits and lower volumes.
Headline trading profit was “ahead of expectations”, up 6.0% to £187.8m,
Within its Grocery division, branded revenues rose 4.6% to £774.3m, with the group’s growth model, new product launches, and sharper promotional pricing driving volumes in the UK up 8%. Recent acquisitions, The Spice Tailor and Fuel10k, also both delivered double-digit revenue growth.
In Sweet Treats, branded revenue increased by 7.3% to £233.8m, with the Mr Kipling’s Signature premium ranges performing particularly well.
Alex Whitehouse, Chief Executive, commented: “The business has delivered another strong year, with branded revenue growth up 5.2%, exceeding £1bn, and driven by particularly good volumes which resulted in us taking further market share. With this strong branded performance, trading profit grew 6% compared to last year, exceeding our previously raised expectations.”
He added: “Our premiumisation strategy continues to be highly relevant, reflecting the trend for consumers to trade up and treat themselves to ranges such as our Ambrosia Deluxe and Mr Kipling Signature Bites, both of which delivered very strong revenue growth this year. Our Nissin noodles again achieved double-digit sales growth, taking yet more market share and benefitted from the addition of big pots and Demae Ramen to the range.
“In addition to the strong financial performance, we have also made progress against all the pillars of our growth strategy; we significantly increased capital investment in our manufacturing sites this year, delivering improved efficiencies and providing the platform for future growth. Our revenue in new categories rose by 46%, led by Ambrosia porridge pots and we also grew our overseas businesses by 23%.
“Additionally, and as we apply the benefits of our branded growth model, our acquired brands, The Spice Tailor and FUEL10K, both delivered double-digit sales growth this year and remain well-set for significant future growth.”
Looking ahead, Whitehouse said the business expected revenue growth to be supported by its product innovation programme, with expectations for trading profit growth unchanged.
He went on to say: “In line with our capital allocation framework, we will continue to invest in projects to both increase efficiencies and automation and facilitate growth through product innovation and capacity while we also remain focused on pursuing M&A opportunities where we can add value to brands through the application of our branded growth model.”
