Premier Foods (PFD) H2 2025 earnings summary

Executive summary

• Full-year sales reached £1.148 billion, up 3.5% year-over-year, with branded sales surpassing £1 billion for the first time and growing 5.2% ahead of the market.

• Trading profit rose 6% to £188 million, slightly ahead of upgraded guidance, and adjusted PBT increased 8.8% to £169 million.

• Net debt reduced by £92 million, with net debt/EBITDA at 0.7x, the lowest ever for the group.

• Dividend per share increased by 62% to 2.8p, reflecting strong performance and the removal of the pension dividend match.

• Strong progress made across all five strategic pillars, including UK core, category expansion, international growth, infrastructure investment, and M&A.

Financial highlights

• Branded revenue grew 5.2% to just above £1 billion, while non-branded revenue declined 7% due to selective contract exits.

• Divisional contribution up 5.4% to £265 million, with trading profit margin improving by 0.4ppt to 16.4%.

• Grocery branded revenue up 4.6% to £774m, sweet treats branded revenue up 7.3% to £234m.

• Adjusted EPS up 7.3% to 14.5p.

• Net regular interest fell to £19m, aided by higher cash balances.

Outlook and guidance

• Revenue growth for the coming year expected to be more balanced between volume and price mix, with continued strong innovation pipeline.

• CapEx guidance set at £50 million, focusing on high-return projects and efficiency.

• On track to deliver trading profit growth expectations for the year.

• Medium-term growth expected to be mid-single digit, including bolt-on acquisitions.