Premier Foods, the maker of Mr Kipling cakes and Bisto gravy, now expects full-year profit and earnings per share at the top end of market forecasts after cutting its borrowing costs.
The company will also pay its first interim dividend in 19 years, at 1.12p a share.
It repaid £330 million of bonds in October using a new bank loan and its own cash, which reduces its interest bill.
Premier now expects regular interest costs of about £18 million this year and trading profit growth of 3% to 5%.
Mr Kipling hits £200 million
Branded revenue rose 3.2% to £467.3 million in the 26 weeks to 26 September.
Sweet treats branded sales grew 6.7%, and Mr Kipling became a £200 million brand for the first time after a 10% rise in revenue.
Grocery branded sales rose 2%, held back by hot weather that reduced demand for gravy, stock and soup.
Chief executive Alex Whitehouse said: "Our business and brand portfolio are now significantly more resilient."
International revenue grew 8%.
Statutory profit falls
Trading profit rose 2.4% to £72.2 million, and adjusted pre-tax profit increased 3.8% to £64.7 million.
Statutory pre-tax profit fell 13% to £55.1 million because of restructuring costs and a smaller pension credit.
Net debt dropped £75.9 million to £131.2 million.
Premier said its strong balance sheet gave it significant firepower to buy more brands.
