Despite reporting a trading profit in excess of its forecast, Premier Foods, the company that produces Mr. Kipling confectionary and Bisto gravy, has not ruled out increasing its prices in response to rising input costs.
The company, which published preliminary results today (Wednesday, May 18) for the year ending April 2, 2022, outlined that its trading profit – at £148.3 million – was 11.9% ahead of expectations.
Premier Foods is one of the UK’s largest food producers, with approximately 94% of UK households buying one or more of the company’s products every year. The business employs over 4,000 people and operates from 16 locations in the UK.
Adjusted profit before tax (PBT) was up 37.6% compared to two years ago, earnings per share were also better than expected and dividends were up by 20%.
The company said in a statement that revenues had increased by almost 10% compared to two years ago.
Its international business grew by 25% compared to two years ago, with particularly strong growth here in Ireland and in Australia.
Mr. Kipling enjoyed its best year ever, “benefitting from sustained levels of marketing investment and a series of new product launches”.
However, despite the positive results, and expectations of further progress for 2022-2023, the company said it anticipates seeing “further input cost inflation” and would address that through a combination of measures.
Such measures will include “cost-efficiency programmes and increased pricing” the company stated.
“Our initial trading so far this year has been encouraging, in line with our plans, and we are seeing strong market share gains as consumers increasingly look for good value meal solutions. With this positive momentum, and the resilience of our brands, categories and supply chain, we are confident of delivering another year of good progress,” the company said.