Premier Foods

Premier Foods is one of the UK’s largest food businesses – trading from 15 sites, the company predominantly operates in the ambient food sector which is one of the largest sectors in the domestic grocery market. Premier estimates that approximately 94% of UK households buy one or more of its products every year.

In a recent trading update, Premier Foods increased its profit guidance. The Group continues to trade strongly, bringing the momentum it delivered in the third quarter into the final quarter of the year. Accordingly, it now expects revenue growth in Q4 to be at least 10% ahead of the prior year. The Grocery business still leads the way, with broad based growth and further market share gains, while Sweet Treats has demonstrated an improving trend. International is also expected to deliver another quarter of strong sales growth. Consequently, profit before tax for this year is forecast to be ahead of initial expectations and will exceed £130m.

In July 2022, the company acquired The Spice Tailor, a premium authentic Indian and South East Asian recipe kit maker for £43m. The brand was complementary to the Group’s Sharwood’s and Lloyd Grossman brands and will benefit from Premier’s wide distribution network. In times like these, while consumers are conscious of what they spend in restaurants and on Just Eat, it seems Premier’s trusted and iconic brands including Mr Kipling, Bisto and Homepride continue to be in high demand.

CEO Alex Whitehouse has done a fantastic job since taking the helm and if the market fails to value the company properly, it may well fall into the hands of private equity.

 

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