Premier Foods has seen acquisitions boost sales but, in a bid to boost profits from its bakeries business, the UK group said it had again upped its bread prices.
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The company, which makes brands including Bisto gravy and Ambrosia custard, said sales were “significantly ahead” during the four months to the end of October, due to the acquisitions of Campbell’s UK and Irish business and RHM.
Premier Foods said sales were up 3% on a pro forma basis. Revenue from its “core” business also rose by around 3%.
However, in a bid to boost profits from its bakeries business, Premier Foods said it had again upped its bread prices.
The company, which makes Hovis bread, confirmed predictions that it would increase bread prices again following a similar hike in September.
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By GlobalData“It became necessary to implement a further price increase in the last week in October to mitigate the margin impact of the unprecedented increase in wheat costs seen during the summer,” the company said.
Premier Foods’ spreads and desserts business saw branded sales rise. Campbell’s has seen “good growth”, the company said, although it warned that it had “yet to see an improvement” from its core convenience foods business, which includes Branston Pickle.
Sales of cakes and culinary brands were both up by 3%, Premier Foods added.
