Christmas mince pie sales give Mr Kipling healthy profit boost
The company’s overseas business continued to perform strongly
Premier Foods has said its profits are set to reach the top end of guidance after soaring sales of mince pies and other sweet snacks.
The company, which employs more than 4,000 people, reported that group sales grew by 3.1% for the 13 weeks to December 28.
It said this was driven by strong sales of its branded products, with sales volumes rising 7% across its brands offsetting the impact of easing food price inflation.
Premier Foods boss Alex Whitehouse said the company’s sweet treats business had a “particularly strong Christmas”, with branded sales in the category lifting by 8.9% for the quarter.
It said this included a 20% jump in mince pie sales, reflecting their strongest-ever quarter.
The firm also hailed positive growth by recently-acquired brands The Spice Tailor and Fuel 10K.
Meanwhile, the company’s overseas business continued to perform strongly, with sales up 29% for the quarter.
In its grocery arm, its continued focus on brands helped to offset decline in its private label operation, with non-branded down 9.3% for the quarter.
Mr Whitehouse, chief executive of the group, said: “We are pleased to report another very good quarter of volume-led branded revenue growth, accompanied by further market share gains, as our branded growth model continues to deliver well for us.
“Earlier this year, we said that consumers are starting to trade up and treat themselves more.
“This has continued over Christmas with our premium ranges such as Ambrosia Deluxe desserts, Bisto Best gravy and Mr Kipling Signature Brownie Bites performing strongly.”
Premier Foods said the positive performance means it is on track to record profits towards the top end of market expectations, which had pointed towards a profit between £180.1 million and £186.4 million for the current year.