Mr Kipling maker Premier Foods has revealed stronger-than-expected profits as sales of sweet snacks increased.
The group said it benefited from strong shopper demand for its premium branded products despite pressure of consumers finances.
Premier Foods, which also owns Ambrosia and Bisto, reported that overall revenues grew by 3.5% to £1.15 billion for the year to March 29, compared with a year earlier.
It said this was buoyed by a 5.2% rise in all revenues across its branded business.
The group’s branded sweet treats business, which includes Mr Kipling and licenced Cadbury products, saw revenues grow by 7.3% for the period.
Sales of Mr Kipling’s Signature premium ranges were particularly strong, with the group highlighting a 78% jump in sales of its brownie bites while its “best ever” mince pies saw revenues double.
The company’s separate grocery arm, which includes Batchelors and Sharwoods, saw branded revenues grow by 4.5% for the year.
However, the company saw a slump in revenues from its non-branded division after it left the frozen pizza base market and shut its Leicestershire factory last year, which had 57 workers.
Premier Foods also hailed strong performances from recently acquired brands The Spice Tailor and Fuel10K.
The business told shareholders that trading profits grew by 6% to £187.7 million, ahead of market expectations.
Alex Whitehouse, chief executive officer, said: “The business has delivered another strong year, with branded revenue growth up 5.2%, exceeding £1 billion, and driven by particularly good volumes which resulted in us taking further market share.
“With this strong branded performance, trading profit grew 6% compared to last year, exceeding our previously raised expectations.
“Our premiumisation strategy continues to be highly relevant, reflecting the trend for consumers to trade up and treat themselves to ranges such as our Ambrosia Deluxe and Mr Kipling Signature Bites, both of which delivered very strong revenue growth this year.”
However, shares in the business were flat at 199.6p on Thursday morning.
