Premier Foods, the owner of brands including Mr Kipling cakes, today reported a 3.6% rise in full-year sales and said its home market was proving resilient in the face of a tough consumer environment.
The company said growth was also fuelled by higher international sales and partnerships with noodle-maker Nissin Foods and chocolate maker Mondelez International.
Industry data and surveys show UK shoppers spent more on food as they cut back on non-essential items as household finances come under pressure.
"As people tighten their belts, they eat out less and eat more at home, which is good for Premier," the company's chief executive Gavin Darby said.
Premier Foods has faced pressure from investors after it rejected a twice-improved 65 pence takeover bid from US rival McCormick Foods in 2016.
The company said in June last year it was exploring options as part of a regular review into maximizing shareholder value.
Earlier this year, the company played down reports that it was in talks to sell its Batchelors brand to Nissin, saying any discussions with third parties were part of its business review.
Darby today again dismissed reports of talks to sell Batchelors, while adding that the company was not looking for any other partnerships this year.
Premier, which has struggled with a heavy debt burden, said net debt fell more than 5% to £496.4m.
The company lowered its debt target to under three times EBITDA from the existing three by March 2020.
Premier Foods said it expects its international business to deliver strong double-digit growth over the medium term, calling it a "game changer".
International sales, which accounts for about 7.5% of total revenue, jumped 25% in the period.
Revenue from Australia, currently Premier's largest market abroad, grew 81%. Australia is likely to post further growth, Darby said.
The company said its group underlying sales rose to £819.2m for the year ended March 31, from £790.4m.
Adjusted profit before tax rose about 6% to £78.6m.
