(Reuters) -Britain’s Premier Foods forecast higher annual profit on Thursday after first-half earnings rose on the back of strong performance of its sweet treats and grocery segments.
The maker of Mr Kipling cakes, OXO cubes and Ambrosia custards expects its 2023-24 trading profit to be 10% ahead of last year’s 157.5 million pounds ($195.16 million).
Analysts on average had forecast about 166 million pounds, according to a company-compiled consensus.
Gradually cooling food inflation has brought some relief to the grocery sector at a time when consumers are keeping a tight lid on their spending due to the cost-of-living crisis.
Falling input cost inflation has helped Premier Foods lower its promotional prices across popular branded products like Batchelors Super Noodles and Mr Kipling Slices, CEO Alex Whitehouse said in a statement.
From plain flour to cakes and cooking sauces to quick meals, Premier Foods sells a range of products through supermarkets, convenient stores, discounters and other channels mainly in the United Kingdom.
The company reported a 21.2% rise in adjusted profit before tax for the half year ended Sept.
30 to 56.9 million pounds.
($1 = 0.8070 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Subhranshu Sahu)
