Premier Foods has won bumper profits after a strong year of growth for its branded products.
The Mr Kipling owner beat expectations to post a £200.4m trading profit in the 52 weeks to 28 March 2026, up 6.7% on 2025. Adjusted profit before tax climbed 8.5% to £183.6m
The jump in profits came thanks to an acceleration in branded sales growth, which ramped up to 4.7% in the second half of the year. Full-year branded sales were up 3.4% to £1bn, and made up almost the entirety of Premier’s £1.2bn total revenues.
Growth was led by the group’s sweet treats division, which it has made its strategic focus. Up 7.3%, sales were driven by a raft of innovation including Mr Kipling cake bites and Angel Delight bubble jelly. It was Mr Kipling’s best-ever year for sales.
“Our innovation programme has been particularly strong this year and has been a key driver of growth in our UK core branded business,” said CEO Alex Whitehouse.
In accordance with its ‘five pillars’ growth strategy, the group has ramped up capital investment by 25% to £51.9m to support further innovation and efficiency.
And the group’s acquisitions contributed strongly to growth, with revenue from new categories up 37%.
Grain and pulse pouch brand Merchant Gourmet was the latest of Premier’s deals, snapped up for £48m in August 2025. It followed prior years’ acquisitions of curry kit maker The Spice Tailor and nutrition brand Fuel10k.
“All three of our acquired brands grew revenues double-digits this year and we see further opportunities for them, in the UK and overseas,” Whitehouse said.
The group has continued to make substantial progress on cutting down its leverage, which at £95.2m net debt represented a £48.4m reduction even after the Merchant Gourmet acquisition.
“Now unburdened by pension and exorbitant financing costs, Premier Foods is a prodigious cash generator,” said Shore Capital analyst Darren Shirley.
More to come
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