Premier Foods said this week it had met profit forecasts for 2007 despite soaring ingredients costs.

The company said it had recorded a 1.4% rise in full-year sales and a 3% increase in second-half sales.

Full-year sales of Premier's bread and bakery division were 6% up over the year compared with 2006. Though it had increased the price of its Hovis loaves by an average of 7.5% last summer after the cost of wheat doubled, similar moves by rivals later meant sales had remained resilient.

"Our bread volumes picked up after Warburtons and Kingsmill finally upped their own prices in the autumn," said a spokeswoman. Cakes were among Premier's star performers, with year-on-year sales up 7%, she added.

Last year's integration of RHM and the Campbell's Soups business added £450m to Premier's sales.

However, sales in the group's own label business fell 8% in the second half of last year, though Premier said this was expected.

"It has been our intention to move away from less profitable retailer-branded contracts," said the spokeswoman.

n Cake maker Finsbury Foods said sales growth had been strong across all its businesses in the first half of its financial year, which runs from 1 July.