Premier Foods said Britons are increasingly turning to affordable ranges such as its instant Super Noodles as food prices soar in the cost-of-living crisis.
The group said the Batchelors brand, including its instant Super Noodles, has become its biggest brand in the grocery division after sales jumped by more than a fifth.
Households have been hit by food inflation of more than 19% because the grocery sector has faced supply chain disruption and higher commodity prices – and the impact of Russia’s war on Ukraine on many staples.
Premier Foods chief executive Alex Whitehouse said: “We are continuing to see consumers looking for convenient, affordable and tasty meal solutions and Batchelors and Nissin were two of our best branded performers in the year which benefitted from this trend.”
Premier Foods – which also makes Mr Kipling cakes and a raft of well-known brands like Oxo cubes and Bisto – has been hiking prices across its ranges to help offset “exceptionally high” levels of cost inflation.
But there are signs food prices may be set to stabilise over the coming months, with major supermarkets starting to cut prices of everyday items such as butter and pasta in recent weeks as commodity prices begin to ease back.
Premier said it has been tackling cost pressures through a combination of price increases and cost savings.
Premier said earlier this year that it was closing its factory in Knighton, Staffordshire, in a move affecting about 300 jobs, saying the site does not fit with its “branded growth model strategy” and is marginally loss making.
The group posted a 13% rise in underlying pre-tax profits to £137.2 million for the year to April 1 on revenues 11.8% higher at £1.01 billion.
Over the year ahead, it said it plans to continue looking for deals to expand.
“Looking ahead to the coming year, the group has strong plans in place for product innovation, further consumer marketing and increased capital investment,” the company said.
“Additionally, it expects to build on the initial success in new categories, deliver further progress internationally and continue to explore merger and acquisition opportunities.”
