Premier Foods raised its full-year profit guidance after a strong Christmas trading period. The maker of Mr Kipling cakes and Bisto gravy saw premium ranges outperform as consumers opted for higher-quality treats over the festive season, driving sales growth.

This performance reversal is significant for the UK food manufacturer, which has faced pressure from inflation and shifting consumer habits. The upgrade suggests a strategic pivot toward higher-margin products is gaining traction, potentially easing concerns about the resilience of its core brands in a competitive grocery market.

Investors will watch for margin details in the full report and how sustainable this trading-up trend proves beyond the holiday peak. The company's ability to maintain momentum could signal broader shifts in UK consumer spending patterns as cost-of-living pressures ease.