(Reuters) -Premier Foods expects its full-year profits to come in above market expectations, the group said on Thursday, as its trademark Mr Kipling brand delivered its best-ever Christmas sales after consumers splurged during the festive season.
The company, which makes cakes, sauces, snacks and desserts, now sees trading profit of at least 145 million pounds ($197.58 million) for the fiscal year ending April, ahead of analysts’ average estimate of 140.7 million pounds, according to a company-compiled consensus.
“This was Mr Kipling’s biggest Christmas ever, as our Sweet Treats brands outperformed the market … helped by an increased number of family gatherings over the festive period,” Premier Foods boss Alex Whitehouse said in a statement.
The London-listed company’s third-quarter sales fell 1.8% from a year earlier, as restrictions were eased compared with 2020 when lockdowns had most people eat at home.
However, they were still 7% above pre-pandemic levels in 2019.
“The principal takeaway for us is that PFD have maintained good underlying sales momentum, in a year of tough comps and have protected margins, in a year of high cost inflation,” analysts at Jefferies said.
Premier Foods had spent most of its earnings from the first half of the year to furnish its stock and improve its supply channels constrained by labour shortages.
($1 = 0.7339 pounds)
(Reporting by Muhammed Husain in Bengaluru; editing by Milla Nissi)
