Premier Foods on Thursday reported a rise in annual profits and branded sales after strong performances from its grocery and sweet treats divisions, with innovation-led growth helping deliver what it described as Mr Kipling’s “biggest ever year”.
The maker of Mr Kipling, OXO and Angel Delight said trading profit increased 6.7 per cent to £200.4 million in the year, ahead of previously upgraded expectations, while profit after tax rose 9.4 per cent to £136.6m.
Group branded revenue grew 3.4 per cent over the full year, accelerating to 4.7 per cent growth in the second half. UK branded revenue increased 3.7 per cent overall and 5 per cent in the second half.
Premier Foods said innovation had been a key growth driver, highlighting successful launches including Mr Kipling cake bites tubs, OXO bone broth and Angel Delight bubble jelly.
The company’s sweet treats division delivered branded revenue growth of 7.3 per cent, while grocery branded revenue rose 2.3 per cent. Premier Foods also reported further market share gains across both categories.
“Our innovation programme has been particularly strong this year and has been a key driver of growth in our UK core branded business,” Alex Whitehouse, chief executive, said. “Boosted by these innovations, this has been Mr Kipling’s biggest ever year.”
The business increased capital investment by 25 per cent to £51.9m during the year as it continued to focus on automation and operational efficiencies.
Premier Foods also reported strong progress from newer categories and acquired brands. Revenue from newly entered categories increased 37 per cent, supported by the launch of FUEL10K yogurt and granola products.
Acquired brands The Spice Tailor, FUEL10K and Merchant Gourmet all achieved double-digit revenue growth during the year.
Internationally, US revenue rose 17 per cent and Europe increased 9 per cent, although total overseas revenue declined 1.8 per cent due to lower retailer stock levels for cake products in Australia.
The group’s balance sheet also strengthened, with net debt to adjusted EBITDA reducing to 0.4 times following the acquisition of Merchant Gourmet.
Premier Foods increased its final dividend by 20 per cent to 3.36p per share and said it currently plans to introduce an interim dividend in FY26/27.
Looking ahead, Whitehouse said the group expected to make “further strong progress across all our strategic pillars” in the coming financial year.