Premier Foods to hike prices to tackle inflation as profits beat forecasts
Premier Foods has said it will raise prices of its products as part of plans to tackle rising costs of wheat, dairy and fuel.
The group, which also raised dividends by 20% after its Mr Kipling brand enjoyed its best year ever, said it was gaining market share as consumers seek good value-meal solutions amid Britain’s cost-of-living crisis.
Premier Foods sells a range of products – from plain flour to cakes and cooking sauces to quick meals – through supermarkets, convenient stores, and discounters as well as other channels mainly in the UK.
Although Premier Foods does not have any direct exposure to Russia or Ukraine, it said it would be affected by rising prices of commodities such as wheat and dairy, as well as surging energy prices and the slowing UK economy.
The company also owns brands like Bisto and Ambrosia, and distributes Nissin’s Cup Noodle and Cadbury cakes.
It reported headline trading profit of £148.3m for the year ended April 2, above its forecast of at least £145m.