• Group sales increased 6% versus the prior year.
• International sales advanced 12%.
• Premier Foods is firmly on track to deliver the board’s expectations.

Premier Foods announced its Q1 trading update on Wednesday, which saw the company firmly on track to deliver its full-year expectations.

The British food manufacturer reported group sales were up 6% versus the prior year. In addition, international sales advanced 12% after Australia delivered a strong performance.

Although, I think I boosted the majority of its Mr. Kipling sales. Too good.

As for its grocery sales, the company saw an increase of 6.3%, and branded sales were 4.5% ahead of the prior year. According to Premier Foods, Batchelors and Nissin performed exceptionally well, proving “popular” as household budgets are stretched.

Furthermore, non-branded growth came in at 17.1% due to a strong recovery in out-of-home sales compared to the prior year. Well, we were all in lockdown.

“We have made good progress in recovering our input cost inflation through a range of measures, including cost efficiencies and pricing, and we continue to monitor the situation closely,” said Alex Whitehouse, CEO of Premier Foods. 

As a result, Whitehouse commented that he is confident they are on track to “deliver our expectations for the year.”

Finally, trading has been in line with the board’s expectations after reporting solid sales growth and further market share gains. As a result, Premier Foods expects FY22/23 to remain unchanged.

Premier Foods shares have been quite volatile over the last year. There has been no clear directional bias for its shares. However, the stock increased 0.72% on Wednesday after the report.