Premier Foods has started 2013 strongly, with the company announcing a surge in profits over the past 12 months.
Officials explained that the firm had been boosted by the strong performance of its "power brands", which grew 2.1 per cent during 2012 and added to a 10.6 per cent increase in profits for the year. It meant that the company's overall profits stood at £123.4 million.
As part of a presentation of its annual results, Premier praised the sales figures from power brands such as Hovis, Sharwoods, Ambrosia and Loyd Grossman which grew from £871.2 to £889.2 over the past 12 months.
The company's power brand grocery sales also increased by four per cent, representing the fourth successive quarter which it had experienced growth in this sector. It has meant that the total sales of Premier products (excluding its milling business) amounted to £1.3 billion equating to a 3.2 per cent year-on-year rise. The figures were based on an "underlying business" basis which gave the company a better idea of its performance following a major restructuring programme during 2012.
Mark Moran, chief financial officer, said: "In 2012 we delivered against all of our strategic priorities - reducing net debt levels, significantly reducing costs, building more collaborative customer partnerships and generating growth in our power brands.
"While it's clear that markets will remain challenging in 2013, we believe we have the right strategies in place, including the delivery of further overhead cost savings, to make further progress this year."
The company stated that the preliminary results for the previous year were a solid indicator that it is continuing to deliver against the strategic priorities which it unveiled at the start of 2013.
Alongside Premier's power brands, it also provides a host of other titles such as Angel Delight, Branston, Cadbury and Smash to name just a few. The company noted that these products also experienced significant growth throughout 2012 adding to its overall success during the year.