Premier Foods Q1 sales rise as Mr Kipling and acquired brands deliver

Premier Foods starts the year with steady branded growth

Premier Foods has reported a solid first quarter, with branded revenue rising 4.0% at constant currency during the 13 weeks ended 27 June 2026. Total revenue increased by 2.7% on the same basis to £246.2 million.

The owner of Mr Kipling, Bisto and Ambrosia said it remains on track to deliver its FY26/27 Trading profit expectations. Trading profit is the company's preferred measure of operating performance before certain adjusting items.

That is the key message for investors. Premier Foods has not upgraded guidance, but its brands are growing, market share is improving and recently acquired businesses continue to expand at double-digit rates.

Premier Foods Q1 figures at a glance

Measure	Q1 FY26/27	Year-on-year change at constant currency
Group branded revenue	£224.9 million	4.0%
Group non-branded revenue	£21.3 million	-9.1%
Total Group revenue	£246.2 million	2.7%
Grocery branded revenue	£163.3 million	3.0%
Sweet Treats branded revenue	£61.6 million	6.6%
International revenue	Not disclosed	6%
New categories revenue	Not disclosed	16%

Reported Group revenue was £246.4 million, up 2.8%. Unless otherwise stated, Premier Foods presented its growth rates on a constant-currency basis, which removes the effect of exchange-rate movements.

Mr Kipling leads the Sweet Treats performance

Sweet Treats was the standout division. Branded revenue increased by 6.6% to £61.6 million, helped by another strong quarter from Mr Kipling.

Sales from Premier Foods' largest brand rose 9%, making it one of the Group's fastest-growing brands during the period. New birthday cake slices and whirls flavours, including Cookies & Cream and Custard Cream, supported the result.

Products launched in the previous year also continued to contribute. These included Mr Kipling cake bites tubs and breakfast bakes. The company said the brand again outperformed the wider cake category and gained market share.

Non-branded Sweet Treats revenue grew 5.3% to £7.9 million, reflecting higher pie and tart volumes and a new contract win. Management expects modest growth from this part of the business over the rest of the year.

Overall Sweet Treats revenue increased by 6.4% to £69.5 million.

Grocery grows, but non-branded contracts remain a drag

Grocery branded revenue rose 3.0% at constant currency to £163.3 million, while total Grocery revenue increased by a more modest 1.3% to £176.7 million.

The difference came from non-branded revenue, which fell 15.9% to £13.4 million. Premier Foods said this was £2.5 million lower following planned contract exits. It expects the trend to improve during the second half.

This is not necessarily a sign of weakening demand across the whole Grocery division, given that the exits were planned. Even so, the decline diluted the stronger branded performance and is worth monitoring.

Innovation remained an important growth driver. New launches included Ambrosia custard pouches, Loyd Grossman premium cooking sauce kits and Nissin Kanzen meals focused on complete nutrition.

Earlier launches such as OXO Bone Broth and Angel Delight Bubble Jelly also sold well. Premier Foods said both brands achieved strong sales and market-share gains.

Revenue from products entering new categories increased by 16%, with Cape Herb & Spice benefiting from demand for more flavour and variety, alongside additional retailer distribution.

Sales in Ireland were lower year on year following a move from using a distributor to supplying a key customer directly. The financial effect of this change was not disclosed.

Acquired brands maintain double-digit momentum

The Spice Tailor, FUEL10K and Merchant Gourmet each delivered double-digit revenue growth during the quarter.

Premier Foods expects the three acquired brands to generate approximately £100 million of revenue this year. That would provide evidence that its acquisition strategy is adding meaningful scale rather than simply expanding the number of names in its portfolio.

Merchant Gourmet launched a range of Gourmet Baked Beans, while FUEL10K gained further market share. Its Chocolate Granola continued to hold the leading position in the UK market, according to the company. The Spice Tailor's core Indian kits also performed particularly strongly.

For investors, the appeal is that these brands are contributing growth across different product areas and geographical markets. However, the announcement did not disclose their individual revenue, profitability or margins, limiting the detail available for assessing their financial contribution.

International expansion makes progress

International revenue increased by 6% at constant currency and 7% on a reported basis.

European sales grew at a double-digit rate following the launch of FUEL10K ranges in the Netherlands. North American revenue also increased strongly after Premier Foods secured distribution for Mr Kipling cake slices and pies in the US.

In Australasia, The Spice Tailor's sales rose by more than 20%, supported by a multi-channel marketing campaign. Retailer stock levels of cake also began to normalise.

The direction is encouraging, particularly as Premier Foods is using existing brands and products to expand overseas. However, International revenue in pounds was not disclosed, so investors cannot judge its size relative to the wider Group from this update alone.

What does the outlook mean for investors?

Premier Foods remains on track to meet FY26/27 Trading profit expectations. Company-compiled consensus from eight analysts ranges from £209.4 million to £213.7 million, with an average of £211.4 million.

The positive features of the update are broad-based branded growth, further market-share gains, successful product launches and continued momentum from acquired brands. Mr Kipling's 9% sales increase is particularly notable given its importance to the portfolio.

There are some weaker points. Total revenue growth trailed branded growth because Group non-branded revenue declined by 9.1%. Grocery non-branded sales were especially soft, while Ireland also recorded lower sales. The company did not provide profit, margin, cash flow or balance-sheet figures for the quarter.

This is therefore a reassuring trading update rather than a change in the investment story. Premier Foods has started the year well enough to maintain its profit expectations, with innovation and brand investment continuing to drive growth. The next question is whether it can preserve this sales momentum while converting it into the expected level of full-year profit.