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Premier Foods
(LSE:PFD)
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Rating:67Neutral
Price Target:
206.00 p
▲(2.79% Upside)
Action:Downgraded
Date:09/13/26
The score is driven primarily by solid financial performance (improving profitability, moderate leverage, and stronger free cash flow) and a reasonable valuation (P/E ~12.35). These positives are partially offset by weak technical momentum, with the stock trading below key moving averages and bearish MACD/low RSI readings.
Positive Factors
Improving profitability
Higher operating profit and net income indicate improving earnings power across recent reporting periods, while revenue growth provides a base for continued expansion. This strengthens internal funding capacity and suggests the branded portfolio is converting demand and cost management into better profitability.
Negative Factors
Modest revenue growth
The relatively slow top-line trajectory limits how quickly Premier Foods can expand its earnings base through volume and market growth. Continued profit improvement may therefore depend heavily on pricing, product mix, and efficiency gains, which can constrain the durability of expansion if revenue momentum remains subdued.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability
Higher operating profit and net income indicate improving earnings power across recent reporting periods, while revenue growth provides a base for continued expansion. This strengthens internal funding capacity and suggests the branded portfolio is converting demand and cost management into better profitability.
Read all positive factors
Premier Foods (PFD) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.75B
Dividend Yield1.66%
Average Volume (3M)1.26M
Price to Earnings (P/E)13.2
Beta (1Y)0.46
Revenue Growth2.31%
EPS Growth9.04%
CountryUK
Employees4,385
SectorConsumer Defensive
Sector Strength42
IndustryPackaged Foods
Share Statistics
EPS (TTM)0.15
Shares Outstanding868,795,840
10 Day Avg. Volume1,384,544
30 Day Avg. Volume1,259,007
Financial Highlights & Ratios
PEG Ratio0.81
Price to Book (P/B)1.14
Price to Sales (P/S)1.37
P/FCF Ratio12.02
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.16
Revenue Forecast (FY)£1.22B
Premier Foods Business Overview & Revenue Model
Company Description
Premier Foods plc, together with its subsidiaries, manufactures, distributes, and sells branded and own label food products in the United Kingdom, other European countries, and internationally. It operates through two segments, Grocery and Sweet T...
How the Company Makes Money
Premier Foods makes money primarily by manufacturing and selling branded packaged foods to customers such as UK grocery retailers (supermarkets), wholesalers, and other trade channels; revenue is recognized from the sale of these products, with pr...
Premier Foods Earnings Call Summary
Earnings Call Date:Nov 13, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call presented a generally positive outlook with strong growth in branded segments, market share gains, profitability improvements, and successful strategic investments. However, there are some challenges, such as the levy impact on profits and retailer performance polarization.Positive Updates
Strong Branded Growth
Q2 U.K. branded growth was up 3%, bringing H1 up to 2%. Total branded revenue for the half increased by 1.9%.
Negative Updates
Extended Producer Responsibility Levy Impact
This levy forced a full year's charge in the first half numbers, affecting reported profit delivery.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Branded Growth
Q2 U.K. branded growth was up 3%, bringing H1 up to 2%. Total branded revenue for the half increased by 1.9%.
Read all positive updates
Company Guidance
During the Premier Foods Half Year results Bond Investor Call, several key metrics and strategic insights were shared. The company reported a 3% increase in Q2 UK branded growth, bringing the H1 growth to 2%, despite earlier weather impacts in Q1. Total branded revenue grew by 1.9%, with market share gains of 130 basis points over three years. Trading profit is up by 7% and adjusted PBT by 10%, excluding the impact of the extended producer responsibility levy. The company has reduced its net debt to EBITDA to 1%, following the acquisition of Merchant Gourmet. CapEx guidance was increased from GBP 50 million to GBP 55 million, reflecting the deployment of capital into high-return projects. Internationally, in-market performance in Australia grew by 17% for Cake, although this did not translate to revenue due to stock holding adjustments. The company remains open to future acquisitions if they align with their strategic goals, maintaining a cadence of roughly one acquisition per year.Premier Foods Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
70
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.18B | 1.15B | 1.14B | 1.01B | 900.50M |
| Gross Profit | 428.00M | 413.00M | 406.50M | 332.60M | 300.10M |
| EBITDA | 253.90M | 232.40M | 222.70M | 179.60M | 169.70M |
| Net Income | 136.60M | 124.90M | 112.50M | 91.60M | 77.50M |
Balance Sheet | |||||
| Total Assets | 2.22B | 2.25B | 2.33B | 2.41B | 2.53B |
| Cash, Cash Equivalents and Short-Term Investments | 242.10M | 191.50M | 102.30M | 64.40M | 54.30M |
| Total Debt | 339.20M | 335.10M | 337.90M | 338.70M | 339.30M |
| Total Liabilities | 814.30M | 809.70M | 1.01B | 999.90M | 1.03B |
| Stockholders Equity | 1.41B | 1.44B | 1.33B | 1.41B | 1.51B |
Cash Flow | |||||
| Free Cash Flow | 134.10M | 116.70M | 88.90M | 67.20M | 66.90M |
| Operating Cash Flow | 186.00M | 158.10M | 121.70M | 87.20M | 90.10M |
| Investing Cash Flow | -96.00M | -41.40M | -62.10M | -63.80M | -23.20M |
| Financing Cash Flow | -39.40M | -27.50M | -20.70M | -14.30M | -13.70M |
Premier Foods Technical Analysis
Positive
200.40
Price Trends
195.39
Positive
196.01
Positive
192.76
Positive
Market Momentum
2.16
Negative
62.02
Neutral
60.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PFD, the sentiment is Positive. The current price of 200.4 is above the 20-day moving average (MA) of 195.94, above the 50-day MA of 195.39, and above the 200-day MA of 192.76, indicating a bullish trend. The MACD of 2.16 indicates Negative momentum. The RSI at 62.02 is Neutral, neither overbought nor oversold. The STOCH value of 60.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:PFD.
Premier Foods Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | £1.75B | 13.20 | 9.74% | 1.66% | 2.31% | 9.04% | |
65 Neutral | £2.85B | 18.10 | 14.99% | 2.11% | 9.52% | 18.08% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | £2.31B | 92.56 | 0.73% | 0.90% | 25.76% | -73.03% | |
59 Neutral | £2.50B | 25.45 | 6.17% | 3.50% | 15.55% | 42.40% | |
58 Neutral | £648.86M | 31.41 | 5.91% | 4.84% | 6.63% | -47.51% |
* Consumer Defensive Sector Average
GB:PFD
Premier Foods
202.80
19.05
10.37%
GB:CWK
Cranswick
5,320.00
286.03
5.68%
GB:HFG
Hilton Food
722.50
90.67
14.35%
GB:TATE
Tate & Lyle
565.00
185.96
49.06%
GB:GNC
Greencore
288.80
47.37
19.62%
Premier Foods Corporate Events
Executive/Board ChangesRegulatory Filings and Compliance
Premier Foods discloses senior executive share option exercise and sale
Neutral
Aug 25, 2026
Premier Foods has disclosed a management share transaction involving Human Resources and Communications Director David Wilkinson, in line with Market Abuse Regulation reporting requirements. On 24 August 2026, Wilkinson exercised 406,680 nil-cost ...
Regulatory Filings and Compliance
Premier Foods Discloses Share Purchase by Non-Executive Director
Positive
Jul 17, 2026
Premier Foods plc has disclosed a share purchase by non-executive director Malcolm Waugh, underscoring ongoing regulatory compliance in the wake of market abuse rules that require timely reporting of insider transactions. Waugh acquired 5,156 ordi...
Business Operations and StrategyDividendsShareholder Meetings
Premier Foods shareholders back all AGM resolutions, affirming governance and dividend plans
Positive
Jul 16, 2026
Premier Foods reported that all resolutions at its 2026 annual general meeting were approved by shareholders via poll, including acceptance of the 2025/26 annual report, the directors’ remuneration report and policy, and the declaration of a...
Business Operations and StrategyFinancial Disclosures
Premier Foods boosts branded sales and innovation as it stays on track for full-year targets
Positive
Jul 16, 2026
Premier Foods reported another strong quarter, with group branded revenue up 4.0% and total revenue rising 2.7% for the 13 weeks to 27 June 2026, driven by robust growth in its UK Grocery and Sweet Treats divisions. Mr Kipling led Sweet Treats wit...
Regulatory Filings and Compliance
Premier Foods Discloses Small Share Sale by Supply Chain Chief
Neutral
Jul 1, 2026
Premier Foods plc disclosed that its Chief Supply Chain Officer, Steve Morton, sold 48 ordinary shares in the company at a price of 204.928p per share on 30 June 2026. The transaction, carried out on the London Stock Exchange, is a routine disclos...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.