Premier Foods (LON:PFD) shares soared almost 18% in early deals as the FTSE250 Mr Kipling and Bisto gravy maker unveiled its first quarterly sales rise in two years, demonstrating that its turnaround strategy was taking hold.
Branded sales in the quarter ended October 3 went up 1.6%, the firm said, while trading profit for the first half was lifted 8.4%, as it embarked on "investment and innovation".
"The company is particularly pleased by the return to branded sales growth demonstrated both in the half and the second quarter of the year. This provides further evidence that the company's strategy of investing behind its brands, bringing exciting new products to market and working in even closer partnership with its customers, is delivering tangible results," it told investors.
In the third quarter, it expects to deliver positive group branded sales growth, with Sweet Treats performing more strongly than Grocery.
"The industry backdrop remains a challenging one, but with strategies which are delivering tangible results and significantly higher marketing spend planned for the second half, our profit expectations for the year remain unchanged," the group added.
Profit after tax in the half was £21.7mln, compared to a loss after tax of £49.1mln in the same period last year, while adjusted pre-tax profit rose 21.6% to £28.1mln.
To make the most of the home baking trend, Premier also revealed it had entered a partnership with renowned baker and television star, Paul Hollywood, to launch a unique range of premium, artisanal home-baking products under his name.
Shares added 17.48% to 42p each.