Premier Foods has reported a rise in first-quarter sales, following robust demand for its cakes and grocery products, and said it was raising product prices to mitigate the impact of higher costs.
"We've made a strong start to this financial year, growing sales by 6% in the quarter and again increasing market share both in-store and online, as we continue to apply the elements of our branded growth model," chief executive Alex Whitehouse said.
Cost-Of-Living Crisis
Britain's grocery sector has come under pressure from a costs-of-living crisis and supply disruptions from the war in Ukraine, as surging prices have caused the biggest squeeze on UK household incomes since at least the 1950s.
On the impact that cost inflation is having on the business, Whitehouse added, "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."
The maker of Mr Kipling cakes and Oxo cubes had warned in May that it would be affected by rising prices of commodities as well as surging energy prices and the slowing UK economy.
Sales Rise
Premier Foods said its sales during the three months to July 2 rose 6% compared to the prior year, and that it expects to deliver full-year earnings in line with its estimates.
"With this positive trading momentum behind us, we remain firmly on track to deliver our expectations for the year, " said Whitehouse.
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