* H1 trading profit 123.6 mln stg vs forecast 121-134 mln
* H1 turnover up 3.5 percent to 1.25 bln sterling
* Says key grocery brands, Hovis gaining market share
* Says on track to meet its full-year expectations
(Adds more detail, background)
By Mark Potter
LONDON, Aug 5 (Reuters) - Premier Foods Plc, Britain's biggest food maker, met forecasts with a 5.6 percent rise in first-half profit, helped by market share gains in groceries and bread, and said it was on track to meet full-year expectations.
The firm, whose brands include Hovis bread, Mr Kipling cakes and Branston pickle, said on Wednesday operating profit from continuing business before one-off items and goodwill was 123.6 million pounds ($209.4 million) in the six months to June 27. Forecasts ranged from 121 million to 134 million, according to a Reuters poll of four analysts.
Turnover climbed 3.5 percent to 1.25 billion pounds, helped by market share gains in groceries such as Branston pickle, Loyd Grossman sauces, Batchelor's soup and Hartley's jam.
Hovis's market share also rose 3.6 percentage points to 26.3 percent, its highest for two years, following a relaunch.
"We expect the consumer environment to remain tough but ... we are on course to deliver our full-year profit expectations," Premier Foods, which also makes Sharwood's sauces, Quorn meat substitute and Angel delight desserts, said in a statement.
Premier Foods shares have lagged the UK food producers' index by around 50 percent over the past year, but have outperformed since March when the group eased some concerns over its debts by raising 379 million pounds in an equity fundraising and renegotiating its banking arrangements.
Net debt, ramped up when the firm bought rival RHM and parts of Campbell's, was 1.48 billion pounds, down from 1.8 billion pounds the year before, largely due to the fundraising.
Premier Foods shares closed at 40 pence on Tuesday, valuing the business at about 953 million pounds. (Editing by James Davey and David Holmes) ($1=.5903 Pound)