Premier Foods has said it remains on track to “deliver our expectations” for the current fiscal year, after reporting strong results for the first quarter.
For the quarter, grocery sales rose by 6.3% year-on-year, while branded sales were up 4.5%. The company said that its Batchelors and Nissin brands performed “particularly well”, as more households switched to value meal solutions. However, it noted that volumes were slightly lower, partly due to a strong comparison to last year, which was boosted by pandemic-related lockdowns. Meanwhile, non-branded sales grew by 17.1%, helped by a strong recovery in out of home sales and pricing benefit in retailer branded product categories.
Sales in Sweet Treats grew by 5.1%, with branded sales up 3.3% and non-branded sales surging up 26.8%. Cadbury cake did particularly well, while the Mr Kipling brand saw sales grow despite changes to promotional activity timings. Non-branded sales were also up, helped by contract gains in pies and tarts and pricing benefits.
International sales continued to do well, with sales up 12.4% year-on-year, helped by “very strong” results in Australia (where the Mr Kipling brand reported its highest-ever market share). In Canada and Europe, the Sharwood’s brand is now available at more major national retailers, and in Ireland, sales of Nissin noodles delivered strong growth.
Alex Whitehouse, CEO of Premier Foods, noted: “We have made good progress in recovering our input cost inflation through a range of measures, including cost efficiencies and pricing, and we continue to monitor the situation closely. Consumers are increasingly looking to cook tasty affordable meals at home; this fits well with our broad portfolio of brands and was illustrated by the strong performance of Batchelors and Nissin in the quarter.”
Premier Foods said its full-year forecast remains unchanged, and it expected to “realise further shareholder value” in the medium term.
