Premier Foods met forecasts with a 6% rise in first-half profits today, helped by market share gains for its Hovis bread and a growing trend among recession-hit Britons to eat at home.
Britain's biggest food maker said its strength in packaged groceries like Loyd Grossman sauces and Branston pickle was working in its favour as penny-pinching consumers look to cut back on waste and liven up their leftovers.
Promotions were up about 10% year-on-year, in line with rivals, as food makers battle to attract custom and CEO Robert Schofield said trading conditions were likely to remain competitive.
'People talk about green shoots of economic recovery. I'm not quite so sure. I can see the second half is going to be a pretty tough trading environment,' he said.
But he added this was being offset for Premier by market share gains, driven by advertising campaigns and successful new products launches.
Premier, which also makes Mr Kipling cakes, Bisto gravy and Quorn meat substitute, said operating profit from continuing business before one-off items and goodwill was £123.6m sterling in the six months to June 27.
Turnover climbed 3.5% to £1.25 billion. Net debt at the firm, ramped up when the firm bought rival RHM and parts of Campbell's, was £1.48 billion, down from £1.8 billion the year before, largely due to the fundraising.
Britain's retailers are struggling with a deep economic recession, but grocers are faring better than most as shoppers cut back on eating out. A survey by business consultants Accenture last month found that 64% of Britons are eating at restaurants less often.
