Premier Foods’ share price hit its highest point in over 8 years today following the announcement of its full-year results for the period ending 28th March 2020.
The owner of brands such as Mr Kipling and Sharwood’s saw its revenues reach £847.1m – climbing 2.8%. But the big positive was that profits came in at £53.6m – reversing a loss in the year prior by gaining £96.3m.
And it’s expecting a mega boost for the full-year, claiming it is a ‘privilege’ to help keep the nation fed – highlighting that more people have turned attentions to cooking from home. Hence it is seeing very strong demand for its range of cooking sauces and baking ingredients.
“This has been a period of considerable progress for the Company. We recently concluded our strategic review with a landmark pensions agreement which has the potential to significantly reduce future funding requirements for the Group. This year we delivered Trading profit at the top end of market expectations, reduced our Net debt by £62m, and in so doing lowered our Net debt/EBITDA ratio to 2.7x, beating our previous 3.0x target. In the UK, our brands grew ahead of their categories, and our UK business has now delivered 11 consecutive quarters of revenue growth.”Alex Whitehouse, CEO
With a favourable environment and an increase in consumer marketing – it expects revenues to in the first quarter of the new financial year to be 20% ahead of the same period last year. Likewise, this should put it in good shape to exceed expectations for the full-year.
The one blip was the revelation that international revenues fell 19%.
Investors will no doubt have one key question. Will the increase demand remain or will it flatten out as some form of new normal becomes established and restaurants reopen.
Shares in Premier Foods surged by nearly 16% in afternoon trading – touching 69p.