Premier Foods increased its annual profit outlook on Tuesday (7), as its grocery business witnesses strong demand and performance of its sweet treats segment improves in the fourth quarter, sending shares of the company up 9 per cent.
It said that the group has 'continued to trade strongly' in the weeks since its third quarter trading update.
'The Grocery business continues to lead the way, with broad based growth and further market share gains, while Sweet Treats has demonstrated an improving trend. International will deliver another quarter of strong sales growth,' the group said.
The group, one of UK's largest food suppliers to retail and wholesale customers, in January said it would offset the high input cost inflation by raising prices annually and cutting expenditure.
Trading profit for its 2021-22 financial year came in at £141.2 million (€159.2 million), while adjusted profit before tax stood at £121.4 million (€136.9 million).
Premier Foods is home to some of the UK's best-known brands, including Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr. Kipling, Oxo and Sharwood's.
It operates from 15 sites across the UK, and currently employs more than 4,000 personnel.
Premier Foods' declaration comes amid customer fury as the price of Bisto 550g tub granules surpassed £5. The brand's larger 350g and 450g tubs are usually costing between £4 to £4.50. It was reported earlier that nearly 50 Bisto instant gravy SKUs are up as much as 50.9 per cent higher in price since the beginning of 2023.
Shoppers on social media have even dubbed the brand "the new Lurpak" after the cost of the butter rose sharply last year amid the cost of living crisis.
Reacting to the reports, a Premier Foods spokesperson told Mirror Money that prices are increased as a last resort- offsetting significant increases in the cost of raw materials, energy, packaging and labour wherever we can through internal cost saving measures first.
"However, our most popular 190g Bisto gravy tub is still available at £2," reports quoted the spokesperson as saying.
