UK manufacturer Premier Foods’ Q1 trading update for the 13 weeks ended 28th June 2025 reported increased sales in sweet treats but a decline in soup, gravy and stock sales due to the warmer weather.
Group branded sales were up 1.2%, lapping “strong” comparatives a year ago. Grocery revenue of £174.7 million was down 2.7% compared to the same quarter a year ago.
Branded sales were lower than last year, which Premier Foods said reflected “strong volume growth” in the comparative period, while categories such as gravy, stock and soup were impacted by higher-than-average temperatures during the quarter.
New categories revenue increased by 38% in the quarter, said Premier Foods. Ambrosia Porridge pots reportedly “significantly increased” sales and market share, leveraging further distribution gains while Cape Herb & Spice also delivered strong sales growth. Non-branded Grocery revenue declined (8.8%) due to consumers switching to brands in certain categories, and the decision to exit some lower margin contracts.
Premier Foods’ Sweet Treats branded sales “grew strongly” in the quarter, up 11.4% on last year, which the manufacturer said was “substantially due to the quality of its innovation programme”. The cake category grew in the period, delivering volume and value market share gains.
“We also continued to grow volume and value market share overall, despite the impact of recent warmer weather on some Grocery categories.”
Alex Whitehouse, chief executive officer of Premier Foods, said: “We grew branded sales by another 1.2% this quarter, led by very strong volume led growth in branded Sweet Treats. This was driven by the strength of our innovation programme with new product ranges such as Mr Kipling birthday cake tarts performing very strongly, as we brought to Britain a trend that is particularly popular in the US.
“We also continued to grow volume and value market share overall, despite the impact of recent warmer weather on some Grocery categories. Ambrosia porridge and Cape Herb & Spice were key drivers of further good progress in New categories, with sales up 38%, while The Spice Tailor and FUEL10K also continued to perform very well.
“We expect branded revenue growth to build through the year, as we launch further new products, such as FUEL10K yogurt and granola pots. Our Trading profit expectations for the full year are unchanged, underpinned by our proven branded growth model and ongoing cost efficiency programmes.”
