REG - Premier Foods plc Premier Foods Fin - Quarter 1 Trading Update

Premier FoodsAnnouncement

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RNS Number : 3851R  Premier Foods plc  17 July 2025

17 July 2025

Premier Foods plc (the "Group" or the "Company")

 

 Strong Sweet Treats branded growth; full year Trading profit expectations
 unchanged

Premier Foods today provides its Quarter 1 trading update for the thirteen
weeks ended 28 June 2025

 

 ·             Q1 Group branded sales(4) up 1.2%, lapping strong comparatives a year ago;
               further market share gains
 ·             Group sales increased 0.3%(4) compared to prior year
 ·             Sweet Treats branded sales up 11.4% with volume-led growth from strong
               innovation programme
 ·             Grocery branded sales (2.0%) lower as higher UK temperatures impacted some
               categories
 ·             New categories sales up 38%; further strong growth from Ambrosia Porridge pots
               and Cape Herb & Spice
 ·             International(4) sales up 5%; strong in-market Australia performance
 ·             Acquired brands The Spice Tailor and FUEL10K both delivered double-digit UK
               sales growth
 ·             FY25/26 full year Trading profit expectations unchanged

 

 Alex Whitehouse, Chief Executive Officer

 

"We grew branded sales by another 1.2% this quarter, led by very strong volume
led growth in branded Sweet Treats. This was driven by the strength of our
innovation programme with new product ranges such as Mr Kipling birthday cake
tarts performing very strongly, as we brought to Britain a trend that is
particularly popular in the US."

 

"We also continued to grow volume and value market share overall, despite the
impact of recent warmer weather on some Grocery categories. Ambrosia porridge
and Cape Herb & Spice were key drivers of further good progress in New
categories, with sales up 38%, while The Spice Tailor and FUEL10K also
continued to perform very well."

 

"We expect branded revenue growth to build through the year, as we launch
further new products, such as FUEL10K yogurt and granola pots. Our Trading
profit expectations for the full year are unchanged, underpinned by our proven
branded growth model and ongoing cost efficiency programmes."

 

 Trading update

 

Grocery

Grocery revenue of £174.7m was down (2.7%) compared to the same quarter a
year ago. Branded sales were lower than last year reflecting strong volume
growth in the comparative period, while categories such as gravy, stock and
soup were impacted by higher than average temperatures during the quarter.
Sales of The Spice Tailor and FUEL10K both grew strongly, supported by further
new product development such as East Asian cooking sauce kits and protein
enriched Noodles. New categories revenue increased by 38% in the quarter;
Ambrosia Porridge pots yet again significantly increased sales and market
share, leveraging further distribution gains and Cape Herb & Spice also
delivered strong sales growth. Non-branded Grocery revenue declined (8.8%) due
to consumers switching to brands in certain categories, and the decision to
exit some lower margin contracts.

 

The second half of the year will see an acceleration in new product
development launches. The Spice Tailor is extending into another cuisine with
the introduction of Mexican kits, FUEL10K enters the chilled aisle with high
protein yogurt and granola pots and Bisto brings Peri-Peri gravy to market, to
attract more younger consumers.

 

Sweet Treats

Sweet Treats branded sales grew strongly in the quarter, up 11.4% on last
year, substantially due to the quality of its innovation programme. For
example, the indulgent Mr Kipling Signature Brownie Bites contributed strongly
to growth, as did Birthday cake tarts, attracting new consumers into the
category, while the recently launched healthier 'Lunchbox slices' also
contributed to growth. Meanwhile, Cadbury cake benefitted significantly from
the launch of new Caramel Mini Rolls. In overall terms, the cake category grew
in the period, and Mr Kipling and Cadbury cake both delivered volume and value
market share gains in this growing category. Towards the end of the quarter,
the Group also launched new Mr Kipling 'Breakfast Bakes' which contain fibre
and 30% less sugar. Non-branded sales declined by (5.6)% largely due to
contract exits on Swiss Rolls, Whirls and Slices.

 

International

Overseas revenues grew by 5%(4) at constant currency compared to last year. In
Australasia, cake and cooking sauces both delivered good sales growth, which
was reflected in market share gains in both categories.

 

 Outlook

 

The Group expects branded revenue growth to build through this financial year,
as strong comparatives ease and further new product development comes to
market. Expectations for Trading profit this year are unchanged, underpinned
by delivery of the Group's branded growth model and its ongoing cost
efficiency programmes. In the medium-term, the Group expects to continue to
deliver strong progress against all five pillars of its growth strategy.

 

 Further information

 

A conference call for investors and analysts hosted by Alex Whitehouse, CEO,
and Duncan Leggett, CFO, will take place today, 17 July 2025, at 9:00am BST.
Dial in details are outlined below. A recording of the conference call will be
available on the Company's website later in the day:
www.premierfoods.co.uk/investors/results-centre
(http://www.premierfoods.co.uk/investors/results-centre)

 

 Telephone:             0808 189 0158 (UK toll free)
                        +44 20 3936 2999 (standard international access)
 Access code:           718872

 

A Premier Foods image gallery is available using the following link:

www.premierfoods.co.uk/media/image-gallery/
(http://www.premierfoods.co.uk/media/image-gallery/)

 

As one of Britain's largest food producers, we're passionate about food and
believe each and every day we have the opportunity to enrich life for
everyone. Premier Foods employs over 4,000 people operating from 13 sites
across the country, supplying a range of retail,
wholesale, foodservice and other customers with our iconic brands which
feature in millions of homes every day.

 

Through some of the nation's best-loved brands, including Ambrosia,
Batchelors, Bisto, Loyd Grossman, Mr Kipling, Oxo and Sharwood's, we're
creating great tasting products that contribute to healthy and balanced diets,
while committing to nurturing our people and our local communities, and going
further in the pursuit of a healthier planet, in line with our Purpose of
'Enriching Life Through Food'.

 

 

 Contacts:
 Institutional investors and analysts:
 Duncan Leggett, Chief Financial Officer
 Richard Godden, Director of Investor Relations
 Investor.relations@premier (mailto:Investor.relations@premier) foods.co.uk

 Media enquiries:
 Lisa Kavanagh, Director of Corporate Affairs

 Headland
 Ed Young                                                                    +44 (0) 7884 666830
 Jack Gault                                                                  +44 (0) 7799 089357

 

- Ends -

 

     Notes to editors:
 1.  Sales data is for the thirteen weeks to 28 June 2025 and 29 June 2024
 2.  Sales disclosed include acquisitions and exclude Charnwood Foods, which closed
     in the prior financial year
 3.  Market share data sourced from IRI, 12 weeks ended 28 June 2025
 4.  Sales are stated on a constant currency basis, unless otherwise stated
 5.  All financial data is unaudited and has not been subject to review by the
     Company's auditors

 

 Q1 Sales (£m)   FY25/26      FY25/26               FY24/25    Change vs 1 year ago    Change vs 1 year ago at constant currency

                 Actual       Constant currency
 Grocery
 Branded         158.4        158.7                 161.9      (2.2%)                  (2.0%)
 Non-branded     16.0         16.0                  17.5       (8.8%)                  (8.8%)
 Total           174.4        174.7                 179.4      (2.8%)                  (2.7%)

 Sweet Treats
 Branded         57.8         57.8                  51.9       11.4%                   11.4%
 Non-branded     7.5          7.5                   8.0        (5.6%)                  (5.6%)
 Total           65.3         65.3                  59.9       9.1%                    9.1%

 Group
 Branded         216.2        216.5                 213.8      1.1%                    1.2%
 Non-branded     23.5         23.5                  25.5       (7.8%)                  (7.8%)
 Total           239.7        240.0                 239.3      0.2%                    0.3%

 

This announcement may contain "forward-looking statements" that are based on
estimates and assumptions and are subject to risks and uncertainties.
Forward-looking statements are all statements other than statements of
historical fact or statements in the present tense, and can be identified by
words such as "targets", "aims", "aspires", "assumes", "believes",
"estimates", "anticipates", "expects", "intends", "hopes", "may", "would",
"should", "could", "will", "plans", "predicts" and "potential", as well as the
negatives of these terms and other words of similar meaning. Any
forward-looking statements in this announcement are made based upon Premier
Foods' estimates, expectations and beliefs concerning future events affecting
the Group and subject to a number of known and unknown risks and
uncertainties. Such forward-looking statements are based on numerous
assumptions regarding the Premier Foods Group's present and future business
strategies and the environment in which it will operate, which may prove not
to be accurate. Premier Foods cautions that these forward-looking statements
are not guarantees and that actual results could differ materially from those
expressed or implied in these forward-looking statements. Undue reliance
should, therefore, not be placed on such forward-looking statements. Any
forward-looking statements contained in this announcement apply only as at the
date of this announcement and are not intended to give any assurance as to
future results. Premier Foods will update this announcement as required by
applicable law, including the Prospectus Rules, the Listing Rules, the
Disclosure and Transparency Rules, London Stock Exchange and any other
applicable law or regulations, but otherwise expressly disclaims any
obligation or undertaking to update or revise any forward-looking statement,
whether as a result of new information, future developments or otherwise.

 

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