Premier Foods full-year results beat expectations

16th May 2024 07:28

(Sharecast News) - Mr Kipling owner Premier Foods said on Thursday that its full-year performance was ahead of expectations and it returned to volume growth in the fourth quarter.

In the year to 30 March, adjusted pre-tax profit was up 15.1% to £157.9m, with headline revenue also up 15.1%, to £1.1bn.

Revenue in the branded segment grew 13.5%, including "strong" volume growth in the fourth quarter. Meanwhile, grocery revenue rose 16.7% and the sweet treats segment saw a 10.6% increase.

The company, which also owns Bisto, Oxo and Ambrosia, among others, lifted its dividend per share by 20% to 1.728p.

Chief executive Alex Whitehouse said: "This has been another really strong year for the business with considerable progress across all our key financial metrics and five pillar growth strategy. In the UK, branded revenue increased by 13.6%, accompanied by 29 basis points of market share gain, as we continued to outperform the market. Our brands continue to demonstrate their relevance to consumers, helping them cook and prepare nutritious and affordable meals during what has been a challenging time for many people.

"All our leading brands benefitted from increased marketing investment, as we extended our 'Best Restaurant in Town' campaign into its second year. Ambrosia has now become our fourth £100m brand, in part driven by the premium Ambrosia Deluxe range and the extension into breakfast through porridge pots. Additionally, we continue to work very closely alongside our partner, Nissin, and yet again, Nissin was one of our fastest growing brands having grown by 54% on average over the last five years."