By Scott Kanowsky
Investing.com -- Premier Foods PLC (LON:PFD) has posted a jump in first-half income, as the British firm behind brands like Mr. Kipling cakes and Paxo stuffing was boosted by more customers choosing to eat at home due to rising living costs.
Adjusted profit before taxation for the 26-week period ended on October 1 climbed by 11.9% to £47.0 million (£1 = $1.1881), with the St. Albans-based company crediting the uptick on consistently strong trading and lower interest costs following a move to refinance its fixed rate debt last year.
Total revenue also rose by 6.2% to £418.6M.
"The current economic climate is undoubtedly challenging for consumers, and our broad range of affordable brands have always played a key role for families when times are tough," said Chief Executive Officer Alex Whitehouse in a statement on Wednesday.
"In this environment, our portfolio of brands continues to display strong momentum and are well placed to deliver further growth."
Premier Foods said it is also on track to deliver its annual financial targets. Whitehouse flagged that headwinds still remain from an expected uptick in input inflation throughout the rest of its current fiscal year, but he added that this should be offset by expense reductions and price hikes in the fourth quarter.
Shares in Premier Foods edged slightly lower in mid-morning dealmaking.