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”.
By Greg Wright
Published 20th Jul 2023, 11:03 BST

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.

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

Library image issued by Premier Foods of a shopping basket of the company's goods. 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”. (Photo by Premier Foods/PA Wire)Library image issued by Premier Foods of a shopping basket of the company's goods. 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”. (Photo by Premier Foods/PA Wire)
Library image issued by Premier Foods of a shopping basket of the company's goods. 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”. (Photo by Premier Foods/PA Wire)

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”.