Exceedingly good Christmas for Mr Kipling

PREMIER Foods has posted annual earnings above market estimates after its Mr Kipling cake brand had its “bestever Christmas”.

Sales rose 7% in the third quarter, or 7.3%when comparedwith pre-pandemic levels. International sales in the 13 weeks to January 1 soared 33% compared with two years ago.

CEO Alex Whitehouse said: “This was Mr Kipling’s biggest Christmas ever, as our Sweet Treats brands outperformed the market, growing 6.3% comparedwith last year and 11.6% versus two years ago, helped byan increased numberof family gatherings over the festive period.”

The Mr Kipling cake range saw increased sales of its healthier products, such as the reduced sugar Angel Slices.

Whitehouse added: “All of our strategic international markets saw growth, with sales of Sharwood’s and Mr Kipling both well ahead of the same period two years ago.”

The British food manufacturer said it was now on track to make a profit of at least £145 million for the year, ahead of forecasts of £140.7 million, after bumper festive trade.

Analyst Shore Capital said the update was “very pleasing” and highlighted “tremendous market share gains”. Shares jumped 7p, or 6.36%, to reach 117.00p.

After a successful test in Canada and the first shipments to the US, Premier Foods is now planning a full Mr Kipling roll-out throughout North America during the fourth quarter.