Premier Foods has recorded an 8.8% increase in its profit before tax, reaching £169.3m in the year to 29 March 2025.

The food manufacturing company, which owns brands including Mr Kipling, Bisto and Sharwoods, saw its headline revenue increase by 3.5% in the period to £1.14bn, while its branded revenue jumped 5.2% to just over £1bn, due to “strong branded volume growth”.

Furthermore, Premier Foods reported that its net debt fell by £92m in the year to the end of March to £143.6m, while its earnings per share increased by 7.3% to 14.5 pence.

Its international revenue also jumped by 23% year-on-year, with double-digit revenue growth in all target regions.

Chief executive officer at Premier Foods, Alex Whitehouse, said: "The business has delivered another strong year, with branded revenue growth up 5.2%, exceeding £1 billion, and driven by particularly good volumes which resulted in us taking further market share. With this strong branded performance, Trading profit grew 6% compared to last year, exceeding our previously raised expectations.

"In addition to the strong financial performance, we have also made progress against all the pillars of our growth strategy; we significantly increased capital investment in our manufacturing sites this year, delivering improved efficiencies and providing the platform for future growth.”

In its outlook, Premier Foods said its revenue growth for the current financial year will be “more equally balanced” between volume and price/mix as it continues to “leverage the strength” of its branded growth model.

The firm added that it expects to deliver further progress against its strategic pillars in the year, with expectations for trading growth remaining unchanged.

Investment director at AJ Bell, Russ Mould, described Premier Foods’ results as "exceedingly good".

He commented: "The company became a zombie in the 2010s, so heavily loaded with debt it couldn’t do much more than run to stand still and meet its interest payments. However, a turnaround which has included a massive deleveraging effort has transformed its prospects.

"The company is benefiting from a ‘premiumisation’ trend. Despite an uncertain backdrop which might dissuade people from making big ticket purchases, they still want to reward themselves with pricier sweet treats and Premier Foods has plenty in this space.

"Thanks to the improved balance sheet position, Premier Foods has been able to deliver a material increase in the dividend and the company is moving closer to a full resolution on its pension scheme which could facilitate further generosity to shareholders in the future.”

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