🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Premier Foods projects 10% profit rise amid cost-of-living crisis

EditorPollock Mondal
Published 11/16/2023, 05:08 PM
© Reuters.
PFD
-

LONDON - Premier Foods, the company behind popular brands such as Bird's, Bisto, and Mr Kipling, is forecasting a 10% increase in trading profit for the fiscal year 2023-24, surpassing analysts' expectations even as consumers grapple with a cost-of-living crisis. The company's strategic approach and focus on branded revenue growth have led to significant market share gains and a robust financial performance.

The British food manufacturer has capitalized on falling input costs to offer lower promotional prices on its products, which has driven strong sales across its sweet treats and grocery segments. As a result, Premier Foods has seen an impressive 113 basis point increase in market share within the grocery sector.

For the half-year period ending on September 30, the company reported a substantial 21.2% increase in adjusted profit before tax, reaching £56.9 million (€65 million). This performance was supported by headline sales that jumped from last year's £406.5 million to £484.4 million this period. Statutory revenue also saw a rise from £419.9 million to £494.1 million.

Premier Foods' CEO Alex Whitehouse attributed this strong start to the year to strategic advancements and the company's ability to navigate market challenges effectively. Whitehouse also highlighted the successful acquisition of breakfast brand FUEL10K and the notable performance of The Spice Tailor.

Encouraged by these positive results and a promising start to Q3, Premier Foods has raised its profit expectations for FY23/24. This optimistic outlook comes as a beacon of resilience amidst an environment where many consumers and businesses are facing financial pressures due to rising living costs.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.