Premier Foods Reports Strong Christmas Trading and Raises Profit Outlook

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.