Premier Foods: FY 2019-2020 Preliminary Results

London / UK. (pf) British Premier Foods PLC released its preliminary results for the 52 weeks ending 28 March 2020.

Financial headlines

  • Group revenue up +2.8 percent; Q4 Group revenue up +3.6 percent
  • UK revenue up +4.3 percent; Q4 UK revenue up +7.3 percent
  • Trading profit increased +3.2 percent to GBP 132.6 million after increased marketing investment
  • Adjusted profit before tax up +6.0 percent to GBP 93.3 million; adjusted earnings per share7 up +5.4 percent to 8.9p
  • Statutory profit before tax GBP 53.6 million; profit after tax GBP 46.5 million, both reversing prior year losses
  • Net debt reduced by GBP 61.8 million on pre-IFRS 16 basis to GBP 408.1 million
  • Net debt/Ebitda,11 2.7x percent comfortably beating March 2020 target of 3.0x
  • Combined pensions surplus GBP 1,230.4 million (30 March 2019: GBP 373.1 million)

Strategic and operational headlines

  • Strategic review concluded with landmark pensions agreement; legal documentation now agreed and signed
  • 11 consecutive quarters of UK revenue growth fuelled by successful innovation strategy
  • Significantly increased consumer marketing investment in FY19/20; further increase planned in FY20/21
  • Innovation rate increased 70bps to highest level of 6.5 percent of branded sales
  • International business strategy re-set to build sustainable profitable growth
  • Repayment of GBP 80 million callable at par Floating rate notes in FY20/21 Q1, reducing interest costs by over GBP 4 million p.a.

Alex Whitehouse, Chief Executive Officer: «This has been a period of considerable progress for the Company. We recently concluded our strategic review with a landmark pensions agreement which has the potential to significantly reduce future funding requirements for the Group. This year we delivered Trading profit at the top end of market expectations, reduced our Net debt by GBP 62 million, and in so doing lowered our Net debt/EBITDA ratio to 2.7x, beating our previous 3.0x target. In the UK, our brands grew ahead of their categories, and our UK business has now delivered 11 consecutive quarters of revenue growth.»

For additional information please read the Company’s news release (1’037 KB) below: