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Price increases helped the UK's biggest food producer Premier Foods to grow sales by 6.3 per cent in the first four months of 2008.

The company, which makes many household grocery brands including Branston Pickle and Ambrosia, said sales volumes were similar to last year but price hikes in response to rising commodity costs helped boost profits.

Chief executive Robert Schofield said: "We are pleased by our progress so far this year and trading is in line with our expectations. The group's activities in the first four months of 2008 were dominated by three key themes.

"Firstly, we have made good progress in recovering commodity inflation through a combination of price increases and cost savings.

"Secondly, the integration of RHM and Campbell's continues apace with the focus now shifting to the manufacturing integration.

"Thirdly, we are pressing ahead with a fundamental rejuvenation of Hovis, which will be unveiled in the second half. This will reinvigorate one of Britain's finest food brands with benefits for the company and consumers alike."

Sales at the company's bakery arm were ahead 14.4 per cent despite lower volumes due to the price increases on Hovis bread, which Premier Foods acquired last year as part of its takeover of RHM.

Grocery sales are 2.4 per cent ahead, while sales from the chilled division were up two per cent over the period.

The sales uplift boosted the company's share price on the London Stock Exchange to 133.77p, a 2.49 per cent increase from opening.

Shares in Premier Foods plunged at the start of the year as the company stretched itself financially to buy RHM and Campbell's, at a time when the price of flour was soaring.

Premier Foods said trading profit was in line with group expectations, although the synergies from the integration of Campbell's and RHM will be offset by the delay in recovering cost inflation and lower bread volumes compared to the same period in 2007.