Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Premier Foods has upgraded its trading profit outlook for the financial year after statutory profit before tax rose 35.5% for the second half of the 2020/21 year, according to its half year results.
Statutory profit before tax increased by £35.5 million to £50.5 million, driven by a 28.7% increase in trading profit to £65.8 million after increased marketing investment and incremental Covid costs. Adjusted profit before tax was up 50.2% to £47.7 million while adjusted earnings per share was up 49.6% to 4.5p.
Net debt reduced by £87.9 million under the pre-IFRS 16 basis to £382.8 million, while net debt on the post-IFRS basis was £403.1 million. Its online performance has grown 112%, which is again ahead of channel growth, leading to a market share gain of 260 basis points.
CEO Alex Whitehouse said in the first half of the year, demand for its branded product ranges has been exceptional, particularly in our grocery businesses which have helped deliver strong profit growth and accelerate debt reduction. 'We have seen many more meal occasions being consumed at home, particularly in the first quarter, followed by a transition towards more normal levels of demand through quarter two,' he added.
At 8:16am: (LON:PFD) Premier Foods PLC share price was +5.4p at 108.4p