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Premier Foods profits to hit top end as Mr Kipling cakes remain exceedingly popular

Published: 08:19 23 Jul 2021 BST

Premier foods -
Grocery sales are up 12% on two years ago

Premier Foods PLC (LON:PFD) said profits this year will be at the top end of expectations after another bumper quarter for its Mr Kipling cakes range.

Sales across the group dropped by 13.2% in three months to June as the same period a year ago had a one-off boost from people stocking up during lockdown.

Compared to the period pre-pandemic, sales rose 6.3% with branded sales up 9.3% and grocery was even stronger with a 12% jump.

Online sales were similar to the high levels seen last year and nearly double that of two years ago, Premier added.

Sweet treats, though, have remained especially buoyant and are selling more than even last year said Alex Whitehouse, chief executive.

Mr Kipling, in particular, reported a 7.5% sales increase as people snapped up new low sugar cakes and it launched more products in its premium Signature range.

Whitehouse added: “We have made a very encouraging start to the year, with Quarter 1 sales at the top end of our expectations, as our brands again benefited from the introduction of new products and continued marketing investment.

“When compared to two years ago, our branded sales increased by over 9% with grocery brands up 12%, continuing the strong momentum of recent years

"With our continued strong trading momentum and the substantially lower coupon of the new fixed-rate notes at 3.5%, we now expect to deliver adjusted Profit Before Tax at the top end of our expectations for FY21/22."

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