(Reuters] -Premier Foods is expecting its full year profits to be higher than market expectations. This was after the brand’s trademark Mr Kipling delivered record-breaking Christmas sales, and consumers indulged in the holiday season.

According to company consensus, the company now has a trading profit of at most 145 million pounds ($197.58 millions) in its fiscal year that ended April. This is higher than analysts’ average of 140.7 million pounds.

Premier Foods CEO Alex Whitehouse released a statement, “This was Mr Kipling’s largest Christmas ever. As our Sweet Treats brand outperformed market…helped by increased number of family gatherings throughout the festive period.”

London-listed firm’s third quarter sales dropped 1.8% from the previous year. This was due to a decrease in restrictions compared to 2020, when most people had to eat at home.

They were 7% higher than pre-pandemic levels for 2019

Jefferies analyst said that PFDs have “maintained good underlying sales momentum” in the face of hard comps. In addition, they have managed to preserve margins during a time of high inflation.

Premier Foods spent the majority of its earnings in the first half to stock up and expand its supply chain.

($1 = 0.7339 pounds)