Premier Foods, the renowned U.K. food manufacturer, announced impressive financial results for the first quarter of fiscal year 2024. The company reported an outstanding 21% increase in sales, totaling £231.1 million ($299.1 million). As a result of this robust performance, Premier Foods now anticipates that its full-year trading profit will meet or exceed the higher end of market expectations.
During the 13-week period ending on July 1, Premier Foods observed significant growth in both grocery and branded sales. Grocery sales experienced a substantial 27% increase, while branded sales soared by 25%. Additionally, overseas sales recorded a notable boost of 14%, primarily driven by exceptional performance in Australia and expanded distribution in the United States.
Premier Foods confidently predicts that its trading profit for the fiscal year will align with or surpass market expectations. The projected trading profit range is estimated to be between £162.0 million and £165.4 million, compared to last year’s trading profit of £157.5 million.
In terms of future prospects, Premier Foods anticipates a moderation in revenue growth for its grocery business in the coming quarters. This is expected as the year-on-year impact of higher prices gradually diminishes. However, the company foresees a positive trajectory for its Sweet Treats division, with robust growth anticipated during the second half of the year.
As a testament to their impressive performance, Premier Foods’ shares experienced a 0.8% increase, equivalent to a gain of 1.0 pence, at 0714 GMT, reaching a value of 128.6 pence.