Premier Foods full-year results show a modest increase in revenue, growing 2.5% to £1.175 billion (52 weeks ending 28 March 2026).
Profitability grew quickly, with trading profit up 6.7% to £200.4 million and profit before tax up 12.8%, helped by reduced debt and improved pension costs.
Net debt was down £48.4 million year on year, standing at £95.2 million. Leverage reached a record low at 0.4x compared to EBITA.
Lower leverage means Premier Foods has more financial flexibility, enabling it to invest more into the business, reducing financial risk. It also explains the dividend increase of 20% to 3.36 pence per share, ahead of adjusted earnings growth. The business is also proposing to introduce an interim dividend in FY26/27.
Premier Foods has also agreed the removal of administration fees, meaning the ongoing costs of running the pension scheme which had been previously paid by the business will now be covered by the pension scheme itself, saving the business £5 million a year. This removes structural costs, reduces risk and improves cash generation.
Creating efficiencies and claiming back gains which can be reinvesting into the business has been an ongoing strategy for Premier Foods; with the manufacturer’s capital investments increasing by another 25% last year to £52 million.
Examples of investments include new boilers installed at the Worksop site, which have improved efficiency and lowered CO2 emissions. A solar farm installation was also completed at the Carlton cake site in South Yorkshire, which can provide up to 70% of the location’s electricity requirements.
“These investments help us improve efficiencies and keep prices low for consumers while also helping us to create more growth and more opportunities for our brand,” Alex Whitehouse, CEO of Premier Foods said on a media call this morning.
He outlined intentions to invest further into Premium Foods by continuing to drive growth across the business and generating strong free cash.
What’s driven strong results?
Whitehouse said a key driver of this financial performance has been innovation and new production development.
Branded revenue grew 3.4% overall, now making up 88.6% of total revenue. Non-branded revenue dropped, however; due to contract exits and the Charnwood site closure.
Sweet treats was a particular standout for the business, with revenue up 7.3%, representing 10 consecutive quarters of growth.
“This was driven through a series of really successful new products that we brought to market over the last 12-18 months,” added Whitehouse.
Mr Kipling was one of the strongest growth engines, led by its cake bite tubs – a sharing pack of bite-sized treats which stretch across a six-variant line-up. This range will be rolled out to more customers, expanding distribution, in FY26/27.
Additionally, Breakfast Bakes, also under the Mr Kipling brand were launched to market, expanding the group’s presence in breakfast. Mr Kipling Birthday cake tarts continued to perform strongly too.
Whilst sweet treats were a key driver, the results show that revenue from products with a high nutritional standard increased 16% year on year. This was likely championed by brands such as Fuel10K and Merchant Gourmet the business recently acquired.
Whitehouse said the business is “very pleased” with the three recent brand acquisitions (The Spice Tailor, Fuel10K, and Merchant Gourmet) it has made, which have all seen doubt-digit growth.
Merchant Gourmet is ahead of its acquisition plan having delivered £30 million of sales on a pro forma basis this year.
