Premier Foods PLC (LSE:PFD) shares nudged 3.4% higher after the company revealed a solid 13% boost in adjusted pre-tax profit to £137.2mln, for the year ending April 1, 2023.
The Mr Kipling cakes and Ambrosia rice maker producer reported an 11.8% rise in group revenue, backed by robust growth of its brands.
Premier Foods' CEO Alex Whitehouse hailed the firm's "strong performance in a challenging environment".
He noted that the firm's first acquisition in 15 years, The Spice Tailor, is already showing accelerated sales growth.
Whitehouse confirmed the company's net debt was reduced by over £10mln despite the acquisition.
The results and outlook statement were well-received in the Square Mile. Peel Hunt reiterated its 'buy' recommendation while nudging up its sales and profit forecast by 2%.
The acceleration in performance in [the second half] gives confidence in the longer-term performance" the broker's analysts said.
Premier Foods' shares were changing hands for 134p, up 4.4p, in the first half hour of trade.