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Premier Foods PLC shares rose on Wednesday after the food manufacturer exceeded its profit guidance for financial 2022 and upped its shareholder payout.
Premier Foods shares were trading 6.0% higher in London on Wednesday morning at 113.00 pence each, making it the best FTSE 250 performer.
The St Albans, England-based maker of Bisto gravy, Bird's custard and Mr Kipling cakes recorded a pretax profit of £102.6 million in the year ended April 2, down 16% compared to £122.8 million the year before.
Annual adjusted pretax profit amounted to £128.5 million, reflecting a 38% increase from £115.3 million. Further, it exceeded the adjusted pretax profit guidance of around £125 million Premier Foods lifted in January.
Trading profit was flat at £148.3 million, while revenue fell 4.9% to £900.5 million from £947.0 million.
The food manufacturer explained the fall in revenue was due to ‘exceptional patterns of demand’ that boosted last year's results during the peak of the pandemic.
Compared to the ‘more normalised trading conditions’ of two years ago, revenue is up 6.3% from £847.1 million, while pretax profit is up 91% from its pre-pandemic comparator of £53.6 million.
Premier Foods proposed a full-year dividend of 1.2 per share, a 20% increase from 1.0p the year before.
Looking ahead, Premier Foods said its trading in the new year has been ‘strong’ and in line with internal expectations. The company said it is confident in meeting its full-year expectations.
‘Our initial trading so far this year has been encouraging, in line with our plans, and we are seeing strong market share gains as consumers increasingly look for good value meal solutions. With this positive momentum, and the resilience of our brands, categories and supply chain, we are confident of delivering another year of good progress,’ Chief Executive Alex Whitehouse said.
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