Premier Foods posts nearly 12 per cent revenue growth on back of higher prices

Premier Foods has delivered a year of strong performance in a ‘challenging environment’ with group revenue increasing by 11.8 per cent to £1 billion in fiscal year 2022-23.

The brands grew strongly, up 9.1 per cent, underpinned by the group’s branded growth model and supported by higher pricing.

Trading profit increased by 11.5 per cent to £157.5 million, maintaining margins versus a year ago, as the group managed to offset high input cost inflation through cost savings and increased pricing.

The group’s brands in the UK grew by 7.5 per cent, with the grocery brands further increasing market share. Total grocery revenue was up by 15.3 per cent.

Revenues from new categories increased by 33 per cent, led by early success with Ambrosia porridge pots, and the international revenue grew by 10 per cent with record market share for Mr Kipling in Australia.

The Spice Tailor brand, the group’s first acquisition in 15 years , is already delivering accelerated sales growth with 12 month revenue up by 25 per cent.

The company proposed an increase in the dividend of 20 per cent again this year. Additionally, they  have announced a further 50 per cent reduction in the net present value of its pension contributions and a reduction in annual cash contributions of £6m.

“We know that consumer budgets remain under pressure in the current environment and our broad portfolio of brands continue to provide great options to prepare and eat good value, delicious meals at home,” Alex Whitehouse, chief executive, said.

“We are continuing to see consumers looking for convenient, affordable and tasty meal solutions and Batchelors and Nissin were two of our best branded performers in the year which benefitted from this trend. Batchelors, well known for its tasty Super Noodles, has now become our largest grocery brand, increasing revenues by over 20 per cent this year.”

“We will continue to pursue vigorously our five pillar growth strategy and with our positive momentum, including a good start to Q1, we are well placed to make further progress this year, and our expectations remain unchanged.”