Premier Foods (PFD) H1 2026 earnings summary

Executive summary

• U.K. branded revenue grew 1.9% to £453m in H1, with Q2 growth accelerating to 3% as grocery rebounded and Sweet Treats delivered 9.4% growth, led by Mr Kipling at over 10%.

• Trading profit rose 0.4% to £71m, with underlying growth of 7% when adjusting for the EPR packaging levy; adjusted PBT up 2.2% to £62m and adjusted EPS up 1.1% to 5.4p.

• Merchant Gourmet was acquired for £46m–£49.6m, contributing to portfolio expansion and future growth.

• Net debt/EBITDA remains low at 1.0x post-acquisition, with net debt at £207m, £14m lower year-over-year.

• Strong progress across all five strategic pillars, including new category expansion (+41%), international growth, and successful integration of acquired brands.

Financial highlights

• Total revenue up 0.7% to just over £500m; branded revenue up 1.9%, non-branded revenue declined as part of a deliberate right-sizing.

• Adjusted PBT up 2.2% year-over-year, with lower interest costs and higher cash balances.

• Adjusted EPS at 5.4p; net debt at £207m, £14m lower year-over-year after the Merchant Gourmet acquisition.

• Dividends paid of £24m in H1, up 62% year-over-year, with a progressive policy to grow ahead of earnings.

• Free cash flow for H1 was £16.7m, down from £45.2m in the prior year, reflecting higher working capital and investment.

Outlook and guidance

• On track to deliver full-year trading profit expectations; adjusted PBT now expected to be slightly ahead.

• Revenue expected to step up in H2, driven by both volume and price mix, with a strong innovation pipeline and further benefits from the Merchant Gourmet acquisition.

• CapEx guidance increased to £55m for the year, with similar levels expected in coming years, focused on efficiency and growth.

• Medium-term guidance remains strong across all five strategic pillars.

• Interest costs expected to be lower this year, with a medium-term increase once bonds are refinanced.