Premier Foods Reports Strong Christmas Trading and Raises Profit Outlook

Premier Foods Q3 trading: branded sales up 5.2% and outlook raised

Premier Foods delivered a strong Christmas, with branded revenue up 5.2% and total Group revenue up 4.1% for the 13 weeks to 27 December 2025 (constant currency). Both Grocery and Sweet Treats gained market share, and International returned to double-digit growth.

On the back of this, the Group now expects full year Trading profit to land at the upper end of market expectations. The current range collated from eight analysts is £193.0m – £198.2m, with a mean of £195.3m.

Key Q3 numbers at a glance (constant currency)

Metric	Q3 FY25/26	YoY change
Group Branded revenue	£314.8m	+5.2%
Group Non-branded revenue	£60.3m	(1.5%)
Group Total revenue	£375.1m	+4.1%
Grocery Branded revenue	£246.2m	+5.8%
Grocery Non-branded revenue	£20.6m	(7.5%)
Sweet Treats Branded revenue	£68.6m	+3.1%
Sweet Treats Non-branded revenue	£39.7m	+2.0%
New Categories revenue	Not disclosed	+29%
International revenue	Not disclosed	+10%

Year to date (Q3 YTD) Group totals: revenue £877.1m (+2.1%); branded revenue £767.4m (+3.2%).

What powered the beat: innovation, premium ranges and market share

Premier is hitting on all cylinders across its strategic pillars: innovation, premiumisation and international expansion. Consumers traded up into premium ranges, and the Group’s new product pipeline landed well with retailers and shoppers alike.

• Innovation highlights: OXO Bone Broth and ready-to-use stock; Paxo Stuffing Wreaths (backed by Paxo’s first ad campaign in 40+ years); Angel Delight Bubble Jelly; Mr Kipling Cake Bites tubs.
• Premium outperformance: Ambrosia Deluxe; The Spice Tailor; Mr Kipling Signature Mince Pies continued to outperform, with Signature mince pies up 19%.
• New Categories momentum: revenue up 29%, driven by FUEL10K Yogurt & Granola pots and broader distribution for Cape Herb & Spice.
• Acquired brands doing the heavy lifting: The Spice Tailor and FUEL10K both grew double digits; Merchant Gourmet rose 18% (pro forma) in its first full quarter under Premier ownership.

Segment breakdown: where the growth showed up

Grocery – re-acceleration with share gains

Grocery Branded revenue rose 5.8%, with total Grocery up 4.1%. Premier gained market share as new launches contributed meaningfully to growth. The Ambrosia Deluxe range notably outperformed its category.

New Categories within Grocery were a standout, up 29% in the quarter. Non-branded Grocery revenue fell 7.5% due to the planned exit of lower margin contracts in Stuffing and Custard – a sensible margin-mix decision in my view.

Sweet Treats – resilient despite tough comparatives

Sweet Treats Branded revenue increased 3.1%, on top of strong comparatives last year, and the category also saw share gains. Innovation remained the engine, including Mr Kipling Cake Bites, Breakfast Bakes and Cadbury Caramel Mini Rolls.

Premium lines did the trick over Christmas, with Mr Kipling Signature mince pies up 19% on wider distribution. Non-branded Sweet Treats returned to growth, up 2.0% on contract wins for Tarts and seasonal ranges.

International – double-digit growth is back

International revenue rose 10%, with Australia strong across all categories and more in-market share gains for cake in Australasia. The Spice Tailor and Sharwood’s both contributed, helped by new Spice Tailor big packs and solid core Sharwood’s performance.

The US delivered robust growth on a full quarter of Mr Kipling Apple Pies distribution and increased listings for slices. Looking to Q4, Premier has secured first-time European listings for FUEL10K Granola.

Profit outlook: upper end now in sight

Management now expects FY25/26 Trading profit to be at the upper end of market expectations. The Company’s collated range from eight analysts is £193.0m – £198.2m (mean £195.3m). Trading profit is the Group’s preferred measure of underlying profit performance.

What nudged confidence higher? Strong Q3 trading in the core Christmas quarter, share gains across both divisions, double-digit International growth, and a healthy contribution from acquired brands and New Categories.

Why this update matters for investors

• Brand strength is translating into share gains in both Grocery and Sweet Treats – a key sign of pricing power and relevance.
• Mix improvement: exiting low-margin Grocery contracts should support margins, even as headline non-branded sales dipped.
• Acquisitions are delivering: The Spice Tailor, FUEL10K and Merchant Gourmet all posted double-digit growth, validating the bolt-on strategy.
• Innovation pipeline is working: from OXO to Angel Delight and Mr Kipling, newness is driving volume and premium trade-up.
• International traction: Australia and the US are building nicely, with new European listings ahead for FUEL10K Granola.
• Guidance effectively tightened upwards: “upper end” of the £193.0m – £198.2m Trading profit range signals a confident close to the year.

What to watch next

• Q4 delivery and full-year results – particularly how much of the Q3 momentum carries into the new calendar year.
• Margin mix – benefits from exiting low-margin non-branded work vs continued investment in innovation and marketing.
• International scale-up – sustaining double-digit growth in Australasia and the US as listings broaden.
• New Categories durability – can FUEL10K’s Yogurt & Granola pots, porridge pots and core Granola maintain momentum through FY close.
• Acquisition integration – Merchant Gourmet’s progress after an 18% pro forma Q3 and scope for further distribution gains.

Context and caveats

• Figures are presented on a constant currency basis.
• Headline results exclude the effect of the prior year Charnwood site closure.
• All financial data is unaudited at this stage.
• Some brand growth figures (e.g., International 10%, New Categories +29%) are percentage changes only; absolute revenue for these items was not disclosed.

Bottom line: this was a clean and well-balanced quarter. Branded growth, market share gains, premium trade-up and International momentum give Premier Foods a strong hand into year-end – and management’s guidance nudge reflects that.