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Premier Foods FY profits ahead of its expectations

By Michele Maatouk

Date: Wednesday 18 May 2022

Premier Foods FY profits ahead of its expectations

(Sharecast News) - Mr Kipling and Oxo owner Premier Foods reported full-year trading profit and adjusted pre-tax profit ahead of its expectations on Wednesday as it said it might have to raise prices to tackle inflation.
In the 52 weeks to 2 April, trading profit was flat versus a year earlier at £148.3m but up 11.9% on a two-year basis, while adjusted pre-tax profit rose 11.4% from the previous year to £128.5m, and was 37.6% higher on a two-year basis. Revenue came in at £900.5m, down 3.6% on the year but up 6.3% versus two years prior.

Premier Foods said strong branded growth drove volumes and hailed value market share gains in both the grocery and sweet treats segments.

The company proposed a dividend for the full year of 1.2p a share, up 20% on the previous year.

Chief executive Alex Whitehouse said: "Yet again, our brands have grown faster than their categories, with revenues increasing nearly 10% versus two years ago as they gained volume and value market share in grocery and sweet treats both instore and online. Mr Kipling enjoyed its best year ever, benefitting from sustained levels of marketing investment and a series of new product launches.

"As we enter FY22/23, we have strong growth plans in place including several new product launches such as the range of Mr Kipling Deliciously Good cakes. We anticipate seeing further input cost inflation which we will continue to address using a combination of measures, as we have successfully done before, and including cost efficiency programmes and increased pricing. Our initial trading so far this year has been encouraging, in line with our plans, and we are seeing strong market share gains as consumers increasingly look for good value meal solutions."

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