Premier Foods Share Price Edged 4.12% on High Branded Revenue

The Premier Foods Plc (LON: PFD) share price edged up 4.12% after releasing its half-year results for the 26 weeks to 30 September 2023. The company reported that its branded revenue had surged, experiencing a significant increase of +15.8%, with a solid performance in the second quarter, where branded revenue climbed by +14.3%.

Total Headline Grocery revenue has also seen remarkable growth, up by +24.6%, with Sweet Treats revenue contributing a solid +5.4%. The company has successfully expanded its share in the Grocery market by an impressive +113 basis points.

Trading profit has soared by +19.0%, and the company's margins remain consistent with the prior year. There has been a deliberate effort to boost marketing investments across all major brands, with a notable expansion of the “Best Restaurant in Town” campaign.

The company is making substantial strides in its international endeavours, with Mr Kipling's distribution in the USA steadily building and a continued increase in market share in Australia. The introduction of new categories has proven fruitful, with a remarkable +21% increase in revenue driven by the sustained momentum of Ambrosia porridge pots.

The Spice Tailor brand continues to expand its distribution and is on track to deliver returns ahead of the initial plan. Furthermore, the acquisition of FUEL10K, completed early in the second half, accelerates the company's expansion into the breakfast category.

As a result of these solid performances and strategic moves, the company anticipates its Trading profit for FY23/24 to be approximately 10% higher than the prior year, showcasing its commitment to growth and success in the market.

Premier Foods’ CEO Alex Whitehouse said: “We've had a really good start to the year, making strong progress against all our strategic pillars. We delivered branded revenue growth of nearly 16%, again maintained our Trading profit margins, and continued to grow faster than our markets, gaining 113 basis points of share in our Grocery categories. This performance once again demonstrates the power of our branded growth model and the capabilities of our team. New categories revenue increased by 21%, driven by Ambrosia porridge pots, and our International business grew by 19%, with Mr Kipling building distribution in the USA and taking further market share in Australia.”

Premier Foods share price. 

The Premier Foods share price increased 4.12% to trade at 136.60p from Wednesday’s closing price of 131.20p.