LONDON (ShareCast) - (Sharecast News) - Mr Kipling owner Premier Foods backed its full-year expectations on Wednesday as it posted a rise in first-half profit and revenue despite a challenging backdrop.
In the 26 weeks to 1 October, adjusted pre-tax profit increased 11.9% to £47m on revenue of £418.6m, up 6.2% on the same period a year earlier.

Branded revenue was ahead 3.9% during the half, while non-branded revenue rose 22.8%. The company, which also owns Oxo and Ambrosia, among others, said growth was consistently strong across the period, with first and second-quarter growth of 6.0% and 6.4% respectively.

The group said it benefited as people ate out less due to the cost-of-living crisis.

Chief executive Alex Whitehouse said: "We have again made very good financial and strategic progress in the first half of this year, reporting strong group and branded revenue growth in what continues to be a challenging environment.

"The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough. With people starting to eat out less, they often find the best restaurant in town is at home, where you can make nutritious and tasty meals more affordably. In this environment, our portfolio of brands continues to display strong momentum and are well placed to deliver further growth."

Premier Foods said it continues to see further input cost inflation, which it expects to recover through cost savings and price increases.

"Following a strong first half and with good momentum as we enter H2, we are on track to deliver on expectations for FY22/23," Whitehouse said.

Victoria Scholar, head of investment at Interactive Investor, said: "The cost-of-living crisis that is squeezing consumers coupled with rising input costs on the back of problems with the global supply chain and the war in Ukraine have created a raft of challenges for the food conglomerate.

"Although it expects inflation pressures to remain elevated, Premier Food has managed to defy the doom and gloom with top and bottom line growth in the first half and an optimistic full-year outlook by successfully implementing cost savings and annual price increases in the fourth quarter.

"Investors are weighing up the flagged macroeconomic headwinds against the better-than-expected performance resulting in shares trading modestly lower in today's trade. Shares have proven to be relatively resilient this year, trading only slightly weaker year-to-date and up over 10% over the last month."

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