The owner of Mr Kipling and Ambrosia has reported a 2.5% increase in revenue to £514.5m for the first half of its financial year, despite a decline in operating profit and earnings.
Operating profit fell by 13% to £63.7m, down from £73.2m in the same period last year.
Meanwhile, profit after tax decreased by 12.4% to £41m, compared with £46.8m a year earlier. The business attributed the decline in profitability to higher restructuring costs.
Despite the mixed financial performance, key brand Mr Kipling delivered a strong first half, with revenue increasing by 10% to £200m.
Revenue across Premier Foods’ new categories increased by 15% during the period, driven by a particularly strong performance from Cape Herb & Spice.
The group’s international revenue also recorded growth, rising by 8% over the six-month period and 10% in the second quarter.
Similarly, all of Premier Foods’ acquired brands, including The Spice Tailor, FUEL10K and Merchant Gourmet, delivered double-digit revenue growth.
The group’s branded sweet treats revenue also increased by 6.7%, while its branded grocery division recorded growth of 2%.
Looking ahead, the group expects trading profit to increase by between 3% and 5% compared with the previous financial year.
The manufacturer also expects its full-year adjusted profit before tax and adjusted earnings per share (EPS) to reach the upper end of current market expectations.
Alex Whitehouse, CEO of Premier Foods, said: “In the first half of the year, some of our grocery categories were impacted by prolonged periods of hotter weather; however, our business and brand portfolio are now significantly more resilient due to our expansion into new categories, overseas growth and M&A strategy, so therefore much less impacted by seasonal variations.
“With our increasingly resilient business and a strategy which continues to deliver, we remain confident on delivering further progress over the medium term.”
