mr kipling Archives - Ireland's Forecourt & Convenience Retailer

Premier Foods to hike prices to tackle inflation as profits beat forecasts

Linda Stewart — Wed, 18 May 2022 07:49:45 +0000

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 announcement comes after the company, which makes Mr Kipling cakes and OXO cubes, reported an annual profit that surpassed its forecast.

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.

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Premier Foods plans to ramp up supply chain spend ahead of Christmas

Linda Stewart — Wed, 17 Nov 2021 16:04:22 +0000

Premier Foods, which makes Mr Kipling and Cadbury cakes, plans to spend most of its earnings from the first half of the year on its supply chain.The company says it is spending to keep higher stock levels going into the Christmas season.

It cited that as a reason for recording £23.2m of outflow in the six months to October 2.

Premier Foods highlighted a shortage of lorry drivers, who are a key part of the supply chain especially during the festive season.

“Much of our Christmas volumes have been produced and is now sitting in our warehouses and will be shipped over in the next few weeks. We are the peak of that now, it is essentially done,” Premier Foods boss Alex Whitehouse said.

The company posted £30.7m in pretax earnings for the six months to October 2, a 39.2% drop compared with a year earlier, and guided to £25m in capital expenditure (capex) for the year as it invests more across the supply chain.

In the half-year period, Premier Foods, which also makes Oxo stock cubes and Bisto gravy, said capex was £6.3m.

“With further inflation now evident across a variety of input costs, the group will be taking a range of actions which it expects will be effective later this financial year,” Premier Foods said.

Its half-year revenue also fell 6.5% to £394.1m due to a tough comparative with a year earlier, when people cooked more at home due to Covid-19 enforced lockdowns.

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