Premier Foods (LON:PFD) has raised its full-year profit range as it expects higher demand amid the new restrictions.
Food manufacturers that own the brand, including Kipling and Visto, reported pre-tax profits of £50 million and revenues increased by 15%. Up to £421.5m.
The surge in revenue profits was due to stronger demand for the product as more people were eating at home. Higher demand is expected to continue over the next four weeks, and the group has raised its profit outlook.
Premier Foods also promotes new products and television marketing.
CEO Alex Whitehouse said: “More dining opportunities were consumed at home, especially in the first quarter, and then moved towards more normal levels of demand until the second quarter. During this time, we continue to drive our brand growth model, launching insightful new products and supporting three biggest brands that surpass the ads on the line.
“As a result, we continue to grow faster than all categories, increasing our respective market share, reflecting not only our strong brands but also the incredible performance of our supply chain colleagues to ensure product availability.
“Looking towards the second half of the fiscal year, we expect to see continued revenue growth, further driving new product innovation, strong commercial planning and increased brand marketing investments. We also expect brand demand to increase as the government’s recent increase in restrictions on eating out. The lifespan of this increased demand is likely to be related to the period of these new measures, with a more severe comparison in the fourth quarter, but we expect full-year trading profits to go ahead of current market expectations.
Premier Foods Shares (LON: PFD) is trading at 102,73 (0833GMT).
