Premier Foods PLC

PFD

Equity

ISIN GB00B7N0K053 / Valor 18353151

LSE London Stock Exchange, SETS (2024-11-21)

GBP 1.84+0.88%

Premier Foods PLC
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About company

Premier Foods PLC is a prominent player in the UK's ambient food sector, focusing on a range of grocery categories including Flavourings & Seasonings, Quick Meals, Snacks & Soups, Ambient Desserts, and Cooking Sauces & Accompaniments. The company also has a significant presence in the Ambient Cakes category within its Sweet Treats division. Premier Foods boasts a portfolio of leading brands such as Batchelors, Bisto, Loyd Grossman, OXO, Mr Kipling, and Sharwood’s, which enjoy high household penetration across the UK. Remarkably, products from Premier Foods are purchased by more than 90% of UK households annually, with 84% of the company's total revenue generated from branded products. Beyond its branded offerings, Premier Foods engages in the manufacture of non-branded food products, including cakes and desserts for UK food retailers, and operates a business-to-business division supplying food products and ingredients. Strategic partnerships have been pivotal to its growth, notably with Nissin Foods Holdings Co., Ltd since 2016, enhancing its product offerings in the noodle segment, and with Mondelēz International since 2017, to produce and market Cadbury branded cake and dessert products. These collaborations have not only expanded Premier Foods' product range but also reinforced its market leadership in specific categories, contributing to its international business expansion.

Summarized from source with an LLMView SourceSector: Consumer Non-Cyclicals

Revenue Growth

Premier Foods PLC reported a 5.3% increase in Group sales for Q1 2024 compared to the previous year. Branded sales saw a significant rise of 7.3%, driven by strong performances in both the Grocery and Sweet Treats segments.

Grocery Segment

The Grocery segment experienced a 7.1% increase in revenue for Q1 2024. Branded sales within this segment grew by 8.6%, supported by successful new product launches such as Loyd Grossman Tomato & Mascarpone cooking sauces and The Spice Tailor Chinese kits.

Sweet Treats Performance

Sweet Treats sales reached £59.9 million in Q1 2024, marking a 0.4% increase from the previous year. Branded sales in this segment rose by 3.5%, with notable contributions from Mr Kipling Signature Brownie Bites and new product innovations like Mr Kipling Caramel Tarts.

International Sales

International sales for Premier Foods PLC grew by 24% in Q1 2024. North America saw a 21% increase in revenue, bolstered by the rollout of Mr Kipling cake in Canada and the introduction of The Spice Tailor in the USA. EMEA and Australia also contributed to the strong international performance.

New Revolving Credit Facility

Premier Foods PLC signed a new five-year £227.5 million revolving credit facility in July 2024, replacing the previous £175 million facility. The new agreement comes with improved terms, including a margin of 2.0% above SONIA, and aligns with the company's unchanged cash guidance for FY24/25.

Summarized from source with an LLMView Source

Key figures

42.3%1Y

77.9%3Y

389%5Y

Performance

21.1%1Y

24.2%3Y

35.2%5Y

Volatility