Shares in Premier Foods (LSE:PFD) were top of the FTSE 350 leaderboard on Wednesday morning, as the Mr Kipling maker reported a sales growth acceleration in the past quarter.
Group sales grew 4.1% and branded revenues were up 5.2%, with market share gains in both grocery and sweet treats.
Chief executive Alex Whitehouse said Premier "had a really good Christmas", with the results including a return to double-digit revenue growth overseas with particularly good performances in Australia and the US.
He said product innovation has been "particularly strong" this year, with consumers embracing new ranges including OXO bone broth, Paxo stuffing wreath, Angel Delight bubble jelly and Mr Kipling cake bites tubs.
Premium ranges such as Ambrosia Deluxe, The Spice Tailor and Mr Kipling signature mince pies outperformed the market, as consumers traded up over the festive period.
New category sales delivered 29% growth, led by the growing success of FUEL10K yogurt and granola.
"We grew all of our acquired brands double digits, including our most recent acquisition Merchant Gourmet, as we further leverage both our commercial expertise to expand retailer distribution and marketing capabilities to drive product innovation and increase brand investment," Whitehouse said.
He said trading profits are expected to be at the top end of the £193-198.2 million range.
Broker Peel Hunt said the shares "seem exceedingly good value" on 11.2 times March 2026 forecast earnings and 7.5x on an EV/EBITDA basis.