Premier Foods (PFD) H2 2026 earnings summary

Executive summary

• Revenue rose 2.5% year-over-year to £1.175 billion, with branded revenue up 3.4% to £1.042 billion and strong second-half growth of 4.7%.

• Trading profit exceeded raised guidance, up 6.7% to £200 million, and adjusted EPS increased 8.7% to 15.8p.

• Free cash flow grew 9.1% to £153 million, reducing net debt to £95 million and leverage to 0.4x.

• Dividend increased 20% year-over-year, with plans to introduce an interim dividend.

• Progress made across all five pillars of the growth strategy, including core brand growth, infrastructure investment, new categories, international expansion, and M&A.

Financial highlights

• Branded revenue reached £1.042 billion, up 3.4% year-over-year, with market share gains in the UK and Australia.

• Adjusted profit before tax rose 8.5% to £184 million, driven by lower interest costs.

• CapEx increased 25% to £52 million, supporting manufacturing upgrades and innovation.

• Five-year CAGR for branded revenue was 7.7%, trading profit 6.9%, and free cash flow 23.8%.

• EBITDA margin at 19.3% for FY25/26.

Outlook and guidance

• Expectations for the current and next year remain unchanged, with the business on track in Q1.

• Continued focus on profitable branded revenue growth, new product launches, and leveraging recent acquisitions.

• Planned capital expenditure of £55-60 million in FY26/27, with a 53-week financial year.

• Monitoring global economic and political events, with hedging in place for cost inflation.

• Interest guidance pending bond refinancing; cash tax expected to be around £15 million.