British food group Premier Foods closed the 2025/26 financial year with results that exceeded expectations, driven by the growth of its historic brands, product innovation, and strong cash generation that opens up new opportunities for dividends, acquisitions, and industrial investments. Specifically, annual branded revenue grew 3,4% at constant exchange rates, reaching £1,04 billion, while total revenue reached £1,17 billion, up 2,5%. The second half of the year showed accelerated growth, with branded revenue up 4,7%.
The Sweet Treats business performed particularly well, growing by 7,3%, while the Grocery segment recorded a 2,3% increase. The group also continued to gain market share in the UK in both grocery and packaged sweets.
Adjusted operating profit reached £200,4 million, up 6,7% from the previous year and exceeding guidance raised in recent months. Adjusted pre-tax profit also increased (+8,5% to £183,6 million), net profit (+9,4% to £136,6 million), and earnings per share, which rose 9,8% to 15,7 pence.
On the financial front, net debt decreased to £95,2 million from £143,6 million the previous year, with the net debt/adjusted EBITDA ratio falling to 0,4x. This position is considered strategic by the group to support new investments and future M&A transactions.
The board has proposed a final dividend of 3,36 pence per share, up 20%, with payment expected on 24 July 2026. The board also aims to introduce an interim dividend for the first time during the 2026/27 financial year.
According to CEO Alex Whitehouse, growth was driven by the branded growth strategy and the launch of new, high-value products. Among the products that contributed most were Mr. Kipling Cake Bites tubs, OXO Bone Broth, and Angel Delight Bubble Jelly.
The group also increased industrial investment by 25% to £51,9 million, with a focus on automation, production efficiency and expanding industrial capacity.
The contribution of new business categories was also significant, with revenues growing by 37%, driven in particular by the debut of the FUEL10K brand yogurt & granola products.
Internationally, Premier Foods recorded 17% growth in the United States and 9% in Europe. However, overall overseas business declined 1,8%, impacted by destocking of confectionery products at some Australian retailers. Despite this, the company emphasizes achieving its highest-ever market share in the cake segment in Australia.
During the year, the group also completed the acquisition of the Merchant Gourmet brand, continuing its expansion strategy through future-focused brands. All the acquired brands—The Spice Tailor, FUEL10K, and Merchant Gourmet—recorded double-digit revenue growth.
Among the most significant developments is the improvement in the group's pension position. Premier Foods will no longer make extraordinary contributions to the pension fund, and from 2026, some administrative costs will be covered directly by the pension scheme, with an estimated saving of approximately £5 million per year. The fund's three-year evaluation also concluded with a buy-in surplus.
Looking ahead to the 2026/27 financial year, Premier Foods confirms its expectations for profitable growth, while monitoring the global macroeconomic and geopolitical environment. The group aims to continue developing its business in the UK, strengthen its international presence, and evaluate new acquisition opportunities.
