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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 have high 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, such as Australia, which provides the platform to execute our Branded Growth Model.

Proven Branded Growth Model

Through our market leading brands, we invest in marketing and advertising to build brands, to maintain awareness and keep them contemporary. We launch insight-driven new products and foster collaborative partnerships with our retail customers. Our Branded Growth Model allows us to deliver consistent branded revenue growth in our UK core business and also across other areas of our strategy, including new categories, international and acquisitions.

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 deep pipeline of projects from which we expect to generate further efficiency gains and facilitate our growth agenda. We have steadily increased our capital investment over recent years.

Highly cash generative

With our strong adjusted EBITDA margins, lower pensions 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 between 1.0x-2.0x and have completed three acquisitions since 2022 while still reducing our leverage.

Pension obligations solution

In March 2024, we announced the suspension of pension deficit contribution payments which in FY23/24 were £33m, allowing enhanced capital allocation opportunities. In March 2025, we completed the full merger of the RHM and Premier schemes and the dividend match arrangement was removed. From FY26/27, we are removing c.£5m p.a. administration fees which will part fund plans for an interim dividend.