Premier Foods (PFD) H1 2025 earnings summary

Executive summary

• Revenue for the half-year reached £499m, up 4.6% year-over-year, driven by 6.8% branded revenue growth and double-digit volume gains in both Grocery (+12%) and Sweet Treats (+19%), with market share gains in both segments.

• Trading profit increased 5.5% to £70.2m, adjusted PBT rose 8.9% to £61m, and adjusted EPS grew 8.1% to 5.3p, supported by lower net interest costs and reduced net debt.

• Net debt decreased by £52m to £221m, with leverage at 1.1x EBITDA, aided by the suspension of pension deficit contributions.

• International revenue rose 31% at constant currency, with strong growth in Australia & New Zealand (+39%) and North America (+28%).

• Acquisitions such as The Spice Tailor and FUEL10K performed well, with further M&A opportunities under review.

Financial highlights

• Branded revenue grew 6.8% year-over-year, while non-branded revenue declined due to consumer switching and contract exits.

• Divisional contribution increased 4.3% to £105m; group and corporate costs rose 2% to £35m.

• Trading profit reached £70.2m, up 5.5%, with trading margin stable at 14.1%.

• Grocery revenue rose 5.4% to £374m, with branded revenue up 7% and international up over 30%.

• Capex increased by 63% to £22.5m, supporting automation and efficiency projects.

Outlook and guidance

• On track to deliver full-year expectations, with strong plans for new product launches, increased media investment, and further international expansion in the second half.

• Volume growth expected to remain positive but more modest in the second half as pricing laps sharper promotions from the prior year.

• Progressive dividend policy expected to grow ahead of earnings.