The boss of Premier Foods has said input cost inflation ‘is now past its peak’ as he vowed no further price hikes for the remainder of this year.
Premier Foods, whose stable of brands include Mr Kipling cakes and Oxo Cubes, saw sales soar 21.1 per cent year-on-year in the 12 weeks to July, as the manufacturer enjoyed strong market share gains.
The group’s declaration of easing cost pressures follows similar claims from supermarket bosses and fresh Office for National Statistics data this week revealing slowing consumer price inflation.
Premier Foods, who are the makers of brands such as Mr Kipling cakes, have said its sales have grown by 21.1 per cent year-to-year as branded sales also increased by 17.5 per cent
Alex Whitehouse, CEO of Premier Foods, said ‘We believe the recent period of significant input cost inflation is now past its peak and have no further price increases planned for the rest of 2023.’
UK food and drink manufacturers cut prices for the first time in more than three years in June, passing lower production costs down the supply chain.
The ‘factory gate’ prices paid by the likes of wholesalers and retailers fell from the previous month for the first time since February 2020, according to the Lloyds Bank UK Sector Tracker.
Similarly, data from market researcher Kantar shows grocery price inflation easing in June at the greatest pace since price rises peaked.
Premier Foods also revealed an increase in grocery market share of 94 basis points in the first quarter as branded sales increased by 17.5 per cent.
Mr Kipling delivered record market share in Australia and continued to build further distribution in the US.
Whitehouse said: ‘We’ve made a strong start to the year, sustaining the positive momentum from previous quarters, with Q1 sales growth of 21.1%, branded sales up 17.5% and further grocery market share gains.
‘Our sales performance was broad based, supported by ongoing brand investment, new product development such as Mr Kipling Brownie Bites and strong in-store activation.
‘With this positive momentum, and strong plans behind our leading brands for the remainder of the year, we now expect FY23/24 Trading profit to be at the top end of market expectations.”
Premier Foods shares jumped 1.6 per cent to 129.6p by midafternoon on Thursday. They have added 18.9 per cent since the start of the year.
