Sales of Premier Food’s non-branded baked goods have grown by more than a third in the past six months.
The Mr Kipling owner reported non-branded sweet treats revenue of £13.4m in the 26 weeks ended 1 October, up 35% on the same period in 2021.
Premier said the growth was due to pricing benefits of existing ranges and contract wins in pies, tarts and seasonal products.
Revenue from Premier’s branded baked goods grew by 2.1% to £102.2m, with total revenue from its Sweet Treats division up 5.1% to £115.6m.
The company said volumes had fallen as a result of less promotional activity over the period, but added that this had been offset by price rises to recover cost inflation. As a result, market share also fell, although Premier said it expected this to be temporary.
The recently launched non-HFSS Mr Kipling Deliciously Good cake range had received a very strong response from consumers, according to the business, which pointed out it is the only full cake range that can be promoted on end of aisles and at front of store in large supermarkets under the new legislation.
Premier announced that innovation rolling out in the next six months will include Mr Kipling Brownie Bites, Cadbury celebration cakes and Plantastic Millionaire Flapjacks.
Mr Kipling and Cadbury cake brands had performed well in the international market, reported the company, and in recent months had collectively delivered the group’s highest ever share of the Australian cake market, reaching 16.6%. Premier said a test of Mr Kipling in the US was continuing, with encouraging rate of sale KPIs.
Revenue across the total Premier Foods business was up 6.2% year on year to £418.6m, with profit up by the same amount to £56.7m. The company reported gross margins in line with last year, with the business using cost savings and higher prices to offset inputs inflation.
“We have again made very good financial and strategic progress in the first half of this year, reporting strong group and branded revenue growth in what continues to be a challenging environment,” said Premier Foods chief executive officer Alex Whitehouse.
“We continue to see further input cost inflation, which we expect to recover through a combination of cost savings and our annual price increase in quarter four this year.”