Premier Foods, the owner of brands such as Mr Kipling and Bisto, has posted full-year results ahead of expectations after it gained market share and returned to volume growth in its fourth quarter.
In the year to 30 March, adjusted pre-tax profit rose 15.1% to £157.9m, with headline revenue also up 15.1% to £1.12bn. Trading profit increased by 14% to £179.5m, with the group noting that it faced increased corporate costs in the period due to investment to improve planning systems and support strategic priorities, wage and salary inflation and wider management incentive scheme costs.
Revenue in its Branded division grew 13.5% to £958.1m, with “strong” volume growth in the final quarter of the year as its leading ranges benefitted from increased marketing investment. The division’s Grocery revenue increased by 16.5%, while Sweet Treats lines saw a 4.2% increase.
The group’s Non-Branded unit delivered annual growth of 25.2% to £164.5m, driven by contract wins and price rises to recover input cost inflation in retailer own-label product ranges.
In the fourth quarter, Grocery headline revenue increased by 10.3%, with Branded growth of 12.4% partly offset by Non-Branded, which was 5.4% lower. Meanwhile, Sweet Treats revenue rose by 6.3%, with Branded revenue up 5.0% and Non-Branded ahead 16.7%.
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.”
Whitehouse concluded: “We have a strong set of plans for this year, across each of our strategic pillars and with our return to volume growth, we are on track to deliver on full-year expectations.”
