Premier Foods enjoying stronger sales as people opt for affordable meals

Mr Kipling and Bisto owner Premier Foods has said its sales grew in the first half of the year, as more consumers are opting to stay in rather than eat out.

Its revenues went up by 6.2% in the half year to October 1 to £419 million, from £394 million a year ago.

And the group’s adjusted pre-tax profits swelled by more than a tenth, from £42 million last year to £47 million this year.

The food firm said it had managed to cushion the impact of cost inflation, which has pushed up food and drinks prices significantly, by making cost savings and increasing its prices.

An annual price increase will be made in the fourth quarter of the year, which the group expects to further make up for inflated costs.

Premier Foods’ chief executive Alex Whitehouse said that raising prices is a “last resort” for the business.

He said: “The last thing we ever want to do is increase pricing – that is our last resort. So we work really hard to try and minimise that.”

People are finding that the “best restaurant in town is at home”, Mr Whitehouse said, meaning that its brands have benefited from the shift to affordable meals.

The company is set to launch a campaign encouraging people to cook for just £1 a serving.