Premier Foods PLC

PFD

Equity

ISIN GB00B7N0K053 / Valor 18353151

LSE London Stock Exchange, SETS (2026-01-23)

GBP 1.90+1.50%

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

Headline revenue and branded growth

Headline revenue: ~£502.5m in H1 FY25/26 (headline basis). Headline branded revenue increased ~1.9% in H1 and accelerated in Q2 to +2.5%, driven by Sweet Treats (headline branded +9.4% H1; Q2 Sweet Treats +7.4%).

Trading profit and statutory profitability

Trading profit was £70.5m (up 0.4% versus prior H1). Statutory operating profit rose to £73.2m (+11.9%) and profit before tax to £63.4m (+18.5%), reflecting higher operating profit and lower net finance costs. Basic EPS increased to 5.4p (up 17.4%).

Divisional performance — Grocery vs Sweet Treats

Sweet Treats: headline revenue +6.8% (branded +9.4%), divisional contribution margin improved to 10.7% (up 1.3ppt). Grocery: headline revenue slightly down (c.1.3% excluding Charnwood), but Grocery branded returned to growth in Q2 (+0.9% Q2 headline branded).

Net debt, leverage and cash

Net debt at 27 Sep 2025 was £207.1m (down £14.2m year-on-year). Reported Net debt / Adjusted EBITDA is 1.0x (rolling 12m). Cash and bank deposits were £127.4m; RCF undrawn at £282.5m.

Acquisition and cash outflows

Completed acquisition of Merchant Gourmet effective 1 Sept 2025; cash consideration contributed to higher investing outflows. Cash used in investing activities was £67.4m in H1 (including the acquisition). Free cash flow was £16.7m (H1).

Capital investment and medium‑term plans

Capital expenditure was £23.3m in H1; the group remains on track for c.£55m capex for FY25/26 to support innovation and efficiency. Management reiterates focus on its Branded Growth Model and M&A to drive growth.

Cost items and one‑offs

H1 trading included the full‑year recognition of the new Extended Producer Responsibility (EPR) packaging levy (timing/phasing of recovery noted), and non‑trading items of £1.7m (including Merchant Gourmet transaction costs partly offset by a gain on sale of Charnwood site). Net regular interest was lower, helping adjusted profit before tax to rise modestly.

Outlook

Management expects branded revenue growth to build in H2 supported by new product launches and higher H2 marketing investment, remains on track to meet full‑year trading profit expectations, and now expects adjusted profit before tax to be slightly higher for the year (reflecting lower interest costs).

Summarized from source with an LLMView Source

Key figures

2.93%1Y

65.7%3Y

94.6%5Y

Performance

18.1%1Y

20.3%3Y

23.4%5Y

Volatility