Premier Foods raises full-year profit outlook
The British food manufacturer plans to introduce its first interim dividend in 19 years, alongside increased investment in manufacturing efficiency and potential acquisitions of high-growth brands.
UK – Premier Foods has upgraded its full-year profit expectations after reporting revenue growth across its branded portfolio in the first half of fiscal 2026/27, with Mr Kipling surpassing £200 million (US$221.02M) in annual brand sales for the first time.
The owner of Mr Kipling, Bisto, Ambrosia and Sharwood’s reported a 3.2% increase in branded revenue for the 26 weeks ended September 26, 2026, supported by growth across its Sweet Treats and Grocery divisions.
Sweet Treats branded revenue increased 6.7%, while Grocery revenue grew 2%. The group also recorded further market share gains across both categories.
Mr Kipling delivered particularly strong growth, with revenue rising 10% and taking the brand beyond the £200 million milestone for the first time.
Premier Foods attributed the performance to product innovation, including the launches of Mr Kipling Custard Cream Whirls and Birthday Cake Slices. Its Sweet Treats division has now recorded 12 consecutive quarters of branded revenue growth.
Trading profit increased 2.4% to £72.2 million (US$79.79M), while adjusted profit before tax rose 3.8% to £64.7 million (US$71.5M), supported by lower interest costs. However, statutory profit after tax declined by £5.8 million (US$6.41M) to £41 million (US$45.31M), reflecting higher restructuring costs and a reduced pension credit.
Chief Executive Alex Whitehouse said the group had delivered another good half-year performance, supported by its Branded Growth Model and continued market share gains.
He noted that prolonged periods of hotter weather had affected some Grocery categories but said expansion into new categories, international markets and acquisitions had improved the business’s resilience to seasonal variations.
Revenue from new categories increased 15% during the period, led by strong performance from Cape Herb & Spice. International revenue grew 8% in the first half and 10% in the second quarter. Acquired brands The Spice Tailor, FUEL10K and Merchant Gourmet also recorded double-digit revenue growth.
Premier Foods increased capital investment by 54% to £35.9 million (US$39.67M), with further spending planned to improve manufacturing efficiency and productivity.
For the full year, the group now expects adjusted profit before tax and adjusted earnings per share to reach the top end of current market expectations. Trading profit is projected to grow by approximately 3-5% compared with FY25/26.
The improved outlook reflects lower financing costs following the redemption of its fixed-rate bond.
Premier Foods will also introduce an interim dividend of 1.12 pence per share, its first in 19 years. The payment is scheduled for December 18, 2026, to shareholders on the register on November 20.
Whitehouse said the group’s capital structure provided flexibility to pursue acquisitions and expand its portfolio.
“With the strength of our balance sheet, we have significant firepower available to expand the size of the business through the acquisition of further, future-focused, high growth brands,” he said.
The group said it remained confident in delivering further progress over the medium term while monitoring the macroeconomic and geopolitical environment.
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