Profits improved by almost 5% at United Biscuits in the past year, despite the cost of raw materials continuing to climb.

Sales were up 5.5% for the year to £1.12bn. Meanwhile, profits grew by 4.7% to £156.6m.

News of the performance comes after UB announced plans to spin off its KP Snacks business, appointing former Kraft UK boss Nick Bunker to head up the separated snacks arm.

Kellogg’s and Germany’s Intersnack could be among the bidders for KP Snacks, according to the Financial Times.

Blackstone and PAI Partners bought the company in 2006 for £1.6bn.