Full Year Results for Premier Foods for the 52 weeks ending 29 March 2025
Strong financial performance:
• Branded revenue up 5.2% due to strong branded volume growth; total headline revenue up 3.5%
• Total Headline Grocery branded revenue up 4.6%, Sweet Treats branded revenue up 7.3%
• Market share gains in both volume, up 80bps and value, up 21bps
• Headline Trading profit ahead of expectations and up 6.0% versus prior year
• Adjusted profit before taxation up 8.8% at £169.3m
• Profit after taxation up 11.0%; basic earnings per share up 10.0% to 14.3 pence
• Net debt £92.0m lower than last year and Net debt/EBITDA reduced to 0.7x
• Agreed full pensions merger and removal of dividend match; on track to achieve full resolution by end of 2026
• Dividend stepped up 62% to 2.8 pence, as previous match to pension scheme redeployed into dividend
Good progress on strategic priorities
• UK branded revenue up 4.4%; volume-led from consistent execution of branded growth model
• Capital investment increased by 26% to £41.4m, in line with strategy, driving efficiencies & capacity expansion
• New categories revenue up 46% with good progress across all initiatives
• International revenue up 23%; double-digit revenue growth in all target regions
• The Spice Tailor and FUEL10K both delivered double-digit revenue growth
Alex Whitehouse, Chief Executive Officer, said:
“The business has delivered another strong year, with branded revenue growth up 5.2%, exceeding £1 billion, and driven by particularly good volumes which resulted in us taking further market share. With this strong branded performance, Trading profit grew 6% compared to last year, exceeding our previously raised expectations.”
“Our premiumisation strategy continues to be highly relevant, reflecting the trend for consumers to trade up and treat themselves to ranges such as our Ambrosia Deluxe and Mr Kipling Signature Bites, both of which delivered very strong revenue growth this year. Our Nissin noodles again achieved double-digit sales growth, taking yet more market share and benefitted from the addition of big pots and Demae Ramen to the range.”
“In addition to the strong financial performance, we have also made progress against all the pillars of our growth strategy; we significantly increased capital investment in our manufacturing sites this year, delivering improved efficiencies and providing the platform for future growth. Our revenue in new categories rose by 46%, led by Ambrosia porridge pots and we also grew our overseas businesses by 23%. Additionally, and as we apply the benefits of our branded growth model, our acquired brands, The Spice Tailor and FUEL10K, both delivered double-digit sales growth this year and remain well-set for significant future growth.”
“We have now reduced our leverage to below 1x adjusted EBITDA, reflecting the strong cash generating capacity of our business and the suspension of pension deficit contribution payments. We are one step further towards the full resolution of the pension scheme and with the removal of the dividend match we are stepping up our distribution to shareholders this year with a 62% increase in the dividend.”
“As we look ahead to the coming year, we expect revenue growth to be supported by a strong product innovation programme and our expectations for Trading profit growth are unchanged. In line with our capital allocation framework, we will continue to invest in projects to both increase efficiencies and automation and facilitate growth through product innovation and capacity while we also remain focused on pursuing M&A opportunities where we can add value to brands through the application of our branded growth model.”
To read and download the RNS of our Preliminary Results for the 52 weeks ending 29 March 2025, please click this link.
Headline revenue, including Grocery, UK or International branded revenue is stated on a constant currency basis, while the non-branded revenue is not impacted by the foreign currency movements.