Premier Foods (LON: PFD) has raised its profit outlook for the full year as it expects higher demand amid new restrictions.
The food manufacturer, which owns brands including Mr Kipling and Bisto, reported a pre-tax profit of 35.5% to £50.5m and a 15% increase in revenue. to £421.5m.
The jump in profits in revenue was due to the stronger demand for products as more people are eating at home. The higher demand is expected to continue over the next four weeks and the group has raised its profit outlook.
Premier Foods is also driving new products and television marketing.
Chief executive Alex Whitehouse said: “We have seen many more meal occasions being consumed at home, particularly in the first quarter, followed by a transition towards more normal levels of demand through quarter two. During this entire time, we have continued to drive our branded growth model, launching insightful new products and supporting our three biggest brands with above the line advertising.
“Consequently, we have continued to grow faster than all our categories, increasing market share in each one; a reflection not only of our strong brands but also the amazing performance of our supply chain colleagues to ensure product availability.
“Looking to the second half of the financial year, we expect to see continued revenue growth driven by further new product innovation, strong commercial plans and increased marketing investment for our brands, with six major brands planned to be advertised on TV. We also now expect to see an increase in demand for our brands due to the impact of recently increased government restrictions on eating out. The longevity of this increased demand is likely to be linked to the duration of these new measures, and although we have tougher comparatives in the fourth quarter, we anticipate that Trading profit for the full year will be ahead of current market expectations.”