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Our investment case

Our business has a clear, compelling and sustainable long term investment case focused across six key areas

Why invest in Premier Foods?

Premier Foods has a range of attributes which we believe make the Group an attractive investment for equity and debt investors alike. Refer to the outlines below or read our full introductory presentation.

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Portfolio of category leading brands

We are the market leader in the five main categories in the UK in which we operate. Many of our brands display a high degree of household penetration and around 90% of households purchase one or more Premier Foods products every year. We are building ever stronger positions in our categories overseas, an example being cake, where Mr Kipling is the No. 1 brand in the UK, Ireland and Australia.

Proven branded growth model

Brands are at the heart of our business and will continue to drive our future growth. Through our market-leading brands, we invest in emotionally engaging advertising, launch insight-driven new products and foster collaborative partnerships with our retail customers.

Strong margin profile

Our adjusted EBITDA % margins compare favourably with many of our sector peers, including branded multinational FMCG businesses. These strong margins provide the platform for us to continually invest behind our brands, through marketing investment and product innovation.

Supply chain investment

We run an ongoing capital investment programme throughout our supply chain to capture opportunities for growth, enhance site efficiency through cost reduction initiatives and upgrade our infrastructure. We have a pipeline of projects from which we expect to generate further efficiency gains and we plan to steadily build our capital investment over the medium-term.

Highly cash generative

With our strong adjusted EBITDA margins, lower financing costs and proportionate levels of capital investment we generate attractive levels of free cash flow. We maintain a Net debt/adjusted EBITDA medium-term target of 1.5x and have completed two acquisitions since 2022.

Pension obligations solution

In June 2020, we completed a segregated merger of our pension schemes into one single Trust. In March 2024, we announced the suspension of pension deficit contribution payments which in FY23/24 were £33m. This significant step presents us with enhanced capital allocation options to deliver on our growth ambitions. A full resolution is expected by the end of 2026.