Premier Foods: Preliminary Results FY 2023-2024

London / UK. (pf) British Premier Foods PLC announced its preliminary results for the 52 weeks ending 30th March 2024. Summary:

  • Headline revenue up 15.1 percent; Branded revenue up 13.5 percent, including strong branded volume growth in Quarter 4
  • Total Headline Grocery revenue up 16.7 percent, Sweet Treats revenue up 10.6 percent
  • Full Year market share increased +29bps; both Grocery and Sweet Treats grew share in H2
  • Trading profit ahead of expectations and up 14.0 percent versus prior year
  • Adjusted profit before tax up 15.1 percent at GBP 157.9m; adjusted earnings per share up 6.4 percent reflecting tax rate increase
  • Profit before tax up 34.7 percent to GBP 151.4m
  • Profit after tax up 22.8 percent; basic earnings per share up 22.6 percent to 13.0 pence
  • Net debt/Ebitda reduced to 1.2x; lowest ever leverage
  • Pension deficit contributions suspended from 1 April 2024
  • On track for FY24/25 expectations

Chief Executive’s Conclusions

CEO Alex Whitehouse: «This has been another really strong year for the business with considerable progress across all our key financial metrics and five pillar growth strategy. In the UK, branded revenue increased by 13.6 percent, accompanied by 29 basis points of market share gain, as we continued to outperform the market. Our brands continue to demonstrate their relevance to consumers, helping them cook and prepare nutritious and affordable meals during what has been a challenging time for many people. All our leading brands benefited from increased marketing investment, as we extended our ‘Best Restaurant in Town’ campaign into its second year. Ambrosia has now become our fourth GBP 100m brand, in part driven by the premium Ambrosia Deluxe range and the extension into breakfast through porridge pots. Additionally, we continue to work very closely alongside our partner, Nissin, and yet again, Nissin was one of our fastest growing brands having grown by 54 percent on average over the last five years.

«We continue to invest in our manufacturing sites, with capex stepping up as planned to GBP 33m, as we invest in driving efficiencies and facilitating growth through product innovation. Our expansion into new categories is proving to be particularly successful with revenue growing by over 70 percent, led by Ambrosia porridge, and we extended distribution of Angel Delight ice-cream, Cape Herb + Spice and Oxo Marinades. International sales grew by 12 percent with The Spice Tailor delivering returns ahead of plan and distribution now available in 10 countries. We were also delighted to acquire FUEL10K which is now fully integrated into the core business, is performing very well and for which we have exciting future plans.

«We continue to maintain our strong financial discipline; leverage reduced to 1.2x Net debt/Ebitda this year, our lowest ever level, and we are proposing another 20 percent increase in the dividend. We recently announced the suspension of pension deficit contributions, significantly increasing our free cash flow, which enhances our ability to invest in infrastructure and pursue M+A opportunities to deliver future growth. We have a strong set of plans for this year, across each of our strategic pillars and with our return to volume growth, we are on track to deliver on full year expectations.»

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