Half Year Results for Premier Foods for the 26 weeks ended 27 September 2025
Financial headlines
• H1 Headline branded revenue up 1.9%; Q2 Headline branded revenue up 2.5%
• Headline Sweet Treats branded revenue1 up 9.4%; strong innovation driving growth
• Headline Grocery branded revenue: H1 down (0.5%), Q2 up 0.9%
• Trading profit up 0.4%; underlying progress in H1 up c.7%, offset by recognition of full year packaging levy in H1
• Statutory Profit before taxation up 18.5% to £63.4m; Profit after taxation also up 18.5% to £46.8m
• Net debt £207.1m; Net debt/Adjusted EBITDA, 1.0x and after £46m Merchant Gourmet acquisition
• On track to deliver full year Trading profit expectations
Strategic headlines
• H1 UK Headline branded revenue up 2.0%, Q2 UK Headline branded revenue1 up 3.0%
• Brands now 90% of total revenue driven by Branded Growth Model
• Capital investment £23.3m; on track to increase high returning capital spend to c.£55m this year
• New categories revenue increased +41% including launch of FUEL10K Yogurt & Granola pots
• Further strategic progress in international markets
• Double-digit UK revenue growth for both The Spice Tailor and FUEL10K
• Acquisition of Merchant Gourmet, healthy, premium, convenient whole foods brand
Alex Whitehouse, Chief Executive Officer, said:
“We’ve continued to make strong progress across all our strategic pillars in the first half of the year. In quarter 2, our UK branded revenue stepped up, growing by 3.0%, led by another very strong Sweet Treats performance, of +7.4%, together with a strengthened UK Grocery performance. The Sweet Treats growth reflects the strength of our innovation programme, with notable performances from Mr Kipling Breakfast Bakes, Cadbury Caramel Mini Rolls and the recently launched Mr Kipling cake bites tubs. We are particularly pleased with the continuing success of our Mr Kipling birthday cake tarts, with over 4 million packs sold since launch, as more people take up this US trend. The Grocery portfolio also benefitted from new ranges like Bisto Peri-Peri gravy, Batchelors microwaveable Pasta ‘n’ Sauce and Nissin Demae Ramen, and while warmer weather held back growth in some categories in Q1, the sales trend improved through the second quarter.”
“In New Categories, we increased revenue by 41% in the first half, launching FUEL10K yogurt and granola pots and delivered further growth from Ambrosia porridge and Cape Herb & Spice. Overseas, Australia, our biggest international market, grew in-market sales by 17% although retailers reduced stock buffer levels, temporarily reducing reported revenues. In the USA, we’ve had a promising initial response to our Mr Kipling Apple Pies, which were launched in the first retailer in quarter 2. Our acquired brands, The Spice Tailor and FUEL10K, continued their strong trajectory with both increasing UK revenue in double-digit terms and we acquired Merchant Gourmet, the premium, healthy, convenient meals brand, which we expect to achieve similar levels of growth as we apply our Branded Growth Model.”
“Looking forward to the remainder of the year, we expect branded revenue growth to build, supported by both a particularly exciting product innovation programme and increased H2 marketing investment across a broader range of digital communication platforms. In terms of capital investment, we expect to spend around £55m this year which will deliver attractive returns. We’ll be driving benefits from the Merchant Gourmet acquisition and integration, and we continue to explore additional inorganic opportunities which fit our M&A criteria. With this continued strong strategic momentum, we remain on track to deliver on full year Trading profit expectations.”
To read and download the RNS of our Half Year Results for the 26 weeks ending 27 September 2025, please click this link.