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Highlights

  • Premier Foods’ statutory revenue for 1HFY25 increased by 1.4% YoY, reaching GBP 501.0 million, driven by branded sales growth
  • Non-branded sales fell 27.4% YoY, primarily due to site closures and contract terminations
  • Group profit before tax declined by 7.9% YoY, impacted by reduced pensions credit and higher finance costs
  • In Q3, Grocery sales grew 2.2% YoY, fuelled by branded products and strong holiday demand

Premier Foods PLC (LSE:PFD) specialises in food products. Its business is divided into three segments: Grocery, Sweet Treats, and International. The Grocery segment mainly focuses on selling savory shelf-stable food items. PFD is listed on the FTSE-250 index.

In the first half of financial year 2025 (1HFY25), the group's statutory revenue increased by 1.4% year-on-year to GBP 501.0 million, compared to GBP 494.1 million in H1FY24. This growth was largely fueled by a GBP 28.2 million (6.8%) rise in branded sales across both the Grocery and Sweet Treats categories, reflecting continued consumer preference for branded products. However, this increase was partially offset by a significant GBP 21.3 million (27.4%) decline in non-branded revenue. The drop in non-branded sales stemmed from the closure of the Charnwood and Knighton sites, changes in consumer behavior, and the termination of certain contracts.

Despite the modest revenue growth, group profit before tax fell by 7.9% year-on-year to GBP 53.5 million, compared to GBP 58.1 million in H1FY24. This decline was primarily attributed to a GBP 4.1 million reduction in non-cash pensions credit and a slight increase in net finance costs. These factors outweighed the benefits of higher revenues and improved operational efficiency, ultimately leading to a year-on-year drop in profitability.

Recent Business Update

In the third quarter, the group delivered decent performance across divisions. Grocery sales rose 2.2%, driven by branded growth and holiday demand for premium ranges. Sweet Treats branded sales surged 8.9%, led by Mr Kipling and Cadbury. International revenues grew 29%, with standout results in Australia, Canada, and Europe across multiple brands.

Company Outlook

The group now expects trading profit to be at the higher end of its forecast range, supported by branded revenue growth driven by increased volumes and market share gains. Looking ahead, it anticipates continued momentum, underpinned by a more balanced contribution from both volume and pricing improvements.

Top 10 Shareholders

The top 10 shareholders of Premier Foods collectively hold approximately 54.27% of the company's total shares. Nissin Foods Holdings Co. Ltd is the largest shareholder, owning around 24.27%, followed by Van Lanschot Kempen Investment Management N.V. with a stake of roughly 8.00%, as illustrated in the chart below.

Stock Information

The stock has experienced a growth of approximately 6.88% over the past month and a 4.45% increase in the last six months. With a 52-week low of GBX 140.20 and a high of GBX 198.40, it is currently trading above the average of the 52-week high-low range. As of 14 April 2025, the stock closed at GBX 192.4.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 14 April 2025. The reference data in this report has been partly sourced from EODHD/Others.

Technical Indicators Defined
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Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.