Preliminary Full Year Results for the 52 weeks ending 2 April 2022

Trading profit, Adjusted PBT and earnings per share ahead of previously raised expectations
May 18, 2022


  • Trading profit, Adjusted PBT and earnings per share ahead of previously raised expectations, dividend up +20%
  • Strong branded growth driving volume and value market share gains in both Grocery and Sweet Treats
  • Successfully navigating macro and industry wide supply chain challenges and continued inflationary environment
  • Trading profit margin increased 60 basis points to 16.5%, leveraging operational efficiencies
  • International revenue up +25% vs two years ago; strong growth on Sharwood’s and Mr Kipling
  • Interest costs halved in last two years, reflecting strength of strategic progress and debt refinancing
  • Pensions merger now delivering through c.£60m reduction in NPV of cash contributions
  • New ESG strategy, the ‘Enriching Life Plan’, announced with a series of major sustainability commitments
  • Expectations for further good progress in FY22/23 unchanged

Alex Whitehouse, Chief Executive Officer

“In January, we increased our full year profit guidance, and so it’s particularly pleasing that we have exceeded those increased expectations with Trading profit up 11.9% and adjusted PBT up 37.6% compared to two years ago. Yet again, our brands have grown faster than their categories, with revenues increasing nearly 10% vs two years ago as they gained volume and value market share in Grocery and Sweet Treats both instore and online. Mr Kipling enjoyed its best year ever, benefitting from sustained levels of marketing investment and a series of new product launches.”

“As we look to expand beyond our core UK business, we have made great initial progress leveraging the strength of our leading brands by entering a number of adjacent new categories. Overseas, our International business grew by 25% compared to two years ago with particularly strong growth in Ireland and Australia driven by our priority international brands Sharwood’s and Mr Kipling.”

“Over the last two years, we have completely transformed our financial position with our leverage now down to 1.7x, our interest costs halved, and dividend payments recommenced after thirteen years. Today, we have announced a £60m reduction in the NPV of future pension payments, representing the first important deliverable from the pensions merger we announced two years ago.”

“As we enter FY22/23, we have strong growth plans in place including several new product launches such as the range of Mr Kipling Deliciously Good cakes. We anticipate seeing further input cost inflation which we will continue to address using a combination of measures, as we have successfully done before, and including cost efficiency programmes and increased pricing. Our initial trading so far this year has been encouraging, in line with our plans, and we are seeing strong market share gains as consumers increasingly look for good value meal solutions. With this positive momentum, and the resilience of our brands, categories and supply chain, we are confident of delivering another year of good progress.”

Read and download the full RNS of our Preliminary Results