UK's shift to eating in drives profit growth for Premier Foods and Princes Group
Packaged Food Makers Benefit from Changing Consumer Habits
By Simone Lobo and Nithyashree R B
May 14 (Reuters) - A shift in Britain to cooking at home rather than eating out has boosted sales and profit for packaged food makers Premier Foods and Princes Group, the companies said on Thursday.
Key Trends in Consumer Behavior
The trend for eating in to save money particularly benefited categories including cooking sauces, pasta, canned goods and meal solutions.
Premier Foods: Affordable Products and Brand Performance
Premier Foods CEO Alex Whitehouse said he expected consumers' efforts to find shelter from inflation would support demand for the company's affordable products.
Its brands include OXO bone broth, Bisto gravy and Homepride cooking sauces.
Sweet Segment Success
Among its sweet segment, where Premier Foods has focused on launching new products, its Mr Kipling brand had its biggest year to date, the company said without giving any detail.
Princes Group: Product Innovation and Market Strategy
Princes, which makes Princes Tuna, Napolina pasta and Branston beans, has also introduced new products as it seeks to raise prices where needed to offset rising fuel, freight, and packaging costs linked to the Middle East war.
Princes Group, which floated on the London stock market in October, said April trading was running ahead of the prior year. It did not provide figures.
Growth Strategies and Financial Performance
Acquisitions and Market Expansion
Both companies, which supply packaged food to Britain's major supermarkets, have said they aim to grow through acquisitions and Princes Group said on Thursday it hoped to complete at least one deal in the next couple of months.
Analysts at brokerage Jefferies said there was significant scope for M&A at Premier Foods, either through more bolt-on deals or something bigger.
Profit Growth and Share Performance
Princes reported a 17% jump in adjusted core profit for the three months ended March 31 to 38.2 million pounds ($51.63 million).
Premier Foods' headline trading profit climbed 6.7% to 200.4 million pounds for the year ended March 28, beating market expectations. It raised its dividend by 20%.
Shares in Premier Foods and Princes Group rose 4% and 0.9%, respectively.
Exchange Rate Information
($1 = 0.7399 pounds)
Reporting and Editorial Credits
(Reporting by Simone Lobo and Nithyashree R B in Bengaluru; Writing by Yadarisa Shabong; Editing by Subhranshu Sahu and Barbara Lewis)
