Premier Foods ups profit outlook and says no more price hikes in 2023

Mr Kipling cakes firm Premier Foods said it has no plans to hike prices for the rest of 2023 as it upped its earnings outlook and said painful cost inflation was “past its peak”.

The group – which supplies retailers with a raft of household favourites including Super Noodles, Oxo cubes and Bisto – said trading profits for the full year were set to be at the top end of market expectations.

Premier Foods has pushed through price rises in recent months to offset “significant” cost inflation.

It revealed that grocery sales surged 26.7% in its first quarter to July 1, helping overall revenues lift 21.1% year-on-year, with sales of its branded products up 17.5%.

Suppliers and retailers have been in sharp focus amid concerns that cost cuts are not being passed on quickly enough down the supply chain, and ultimately to shoppers in stores, with Britain’s competition watchdog investigating the grocery sector over worries about profiteering.

Alex Whitehouse, Premier Foods chief executive, 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.”

The firm said revenue growth in the grocery arm is set to “moderate in forthcoming quarters, as year-on-year effects of higher prices reduce”.

It added: “The company’s portfolio continues to demonstrate a high level of relevance to consumers in the current economic climate.

“Following a strong first quarter, and with exciting plans behind the group’s leading brands for the remainder of the year, it now sees trading profit for FY23/24 at the top end of market expectations.”