Premier Foods Plc (LON:PFD) has provided its its Quarter 1 trading update for the thirteen weeks ended 27 June 2026
| · | Group branded revenue3 up 4.0%, with total revenue up 2.7% |
| · | UK branded revenue up 3.8% led by a strong Sweet Treats performance |
| · | Further market share gains in both Grocery and Sweet Treats |
| · | New categories revenue up 16%; reflecting particularly good growth from Cape Herb & Spice |
| · | International3 revenue up 6% with encouraging progress in North America and Europe |
| · | Acquired brands all continuing to achieve double-digit % revenue growth |
| · | On track to deliver FY26/27 Trading profit expectations5 |
Alex Whitehouse, Chief Executive Officer
“We’ve delivered another quarter of strong branded revenue growth, up 4.0% and our largest brand, Mr Kipling, was one of our fastest growing brands, with sales up 9% in the quarter. This performance was driven by the continued strength of our innovation programme, including the launch of birthday cake slices, building on the success of our US trend-inspired birthday cake tarts. In Grocery, the new OXO bone broth and Angel Delight bubble jelly ranges both performed very well. We again outperformed our categories, leading to further market share increases, building on previous gains and we also gained further retailer distribution points, as we continue to land more product ranges in store.”
“Our acquired brands, The Spice Tailor, FUEL10K and Merchant Gourmet all delivered double-digit revenue growth, continuing the great momentum we’ve built since acquiring them and they remain on track to generate approximately £100m revenue this year. Overseas, we launched FUEL10K into Europe and continued the rollout of Mr Kipling in North America. Following this good start to the year, and with further progress expected across all our strategic priorities in FY26/27, we remain on track to deliver Trading profit expectations5 for this year.”
Trading update
Grocery
In Grocery, branded revenue increased by 3.0%, with further market share gains, as total Grocery revenue grew 1.3%. The momentum of the Group’s new product development programme continued at pace, with the launch of Ambrosia custard pouches, Loyd Grossman premium cooking sauce kits and complete nutrition focused Nissin Kanzen meals. Prior year launches of OXO Bone Broth and Angel Delight Bubble Jelly contributed to strong sales and share gains for these two brands. Revenue from entries into new categories increased by 16%, with Cape Herb & Spice benefiting from consumers seeking to add flavour and variety to meal occasions in addition to recent retailer distribution gains. The Group’s acquired brands each delivered double-digit revenue growth in the quarter; Merchant Gourmet introduced a new range of Gourmet Baked Beans, FUEL10K gained further market share with Chocolate Granola continuing to hold the leading position in the UK market and The Spice Tailor core Indian kits performed particularly strongly. In Ireland, sales were lower year on year following a change from a distributor, direct to a key customer. Non-branded revenue was £2.5m lower due to some planned contract exits, with this trend expected to improve in the second half of the year.
Sweet Treats
Mr Kipling continued its positive momentum with another very good quarter, driving Sweet Treats branded revenue up 6.6% on last year. New product development was again a major contributor to this growth, with recent launches such as Birthday cake slices and a new range of whirls flavours, such as Cookies & Cream and Custard Cream. This quarter also benefitted from prior year launches of the already successful Mr Kipling cake bites tubs and breakfast bakes, which helped Mr Kipling outperform the cake category again, gaining further market share. Non-branded Sweet Treats revenue increased 5.3% to £7.9m in the quarter due to increased volumes on pies and tarts and a new contract win; we expect modest growth for the remainder of the year.
International
Revenue in the Group’s International business increased by 6%3 at constant currency (and 7% on a reported basis) in the quarter. Europe grew sales double digits following the encouraging launch of FUEL10K ranges in the Netherlands. Revenue in North America also increased strongly due to recently achieved distribution of Mr Kipling cake slices and pies in the USA. In Australasia, The Spice Tailor sales grew over 20%, as it benefitted from a multi-channel marketing campaign, while retailer stock levels of cake began to normalise.
| Outlook |
Following a good first quarter, the Company remains on track to deliver Trading profit expectations5 for this year. The Group continues to execute on delivering against all pillars of its growth strategy, leveraging its proven Branded Growth Model, and is well positioned to generate further progress in the medium-term.
