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(Alliance News) - Premier Foods PLC on Wednesday declared a payout to shareholders after a 13-year break as earnings surged in its most recently ended financial year.
The St Albans, England-based maker of Bisto gravy, Bird's custard and Mr Kipling cakes said revenue for the 53 weeks to April 3 was GBP947.0 million, an increase of 12% compared to the 52 weeks ended March 28. On a comparable 52-week basis, revenue increased by 10%.
Premier Foods said it saw a prolonged period of elevated demand for its product ranges, as consumers were restricted to eating all meals at home due to the closure of hospitality outlets for long periods. The supply chain demonstrated robustness in meeting the high volumes and, in doing so, kept product availability high, it said.
The FTSE 250-listed company reported trading profit of GBP151.3 million for the year. On a 52-week basis, it was 12% higher year-on-year, reflecting strong growth in the Grocery business, partly offset by a reduction in Sweet Treats division.
Pretax profit totalled GBP122.8 million in financial 2021, doubled from GBP53.6 million the year before.
Premier Foods last paid a dividend to shareholders in 2008. Subject to shareholder approval, the directors have proposed a final dividend of 1.0 pence per share for the year, payable on July 30.
The company said it goes into its financial 2022 in a strong position, having gained a significantly larger consumer base during the past year, and it expects to deliver further progress overseas.
"We are confident in our trading profit expectations for the full year and we expect adjusted pretax profit to benefit from lower financing costs. As we look to the future, with a transformed business in a demonstrably much stronger financial position, we will continue to move forward at pace and with rigour, applying our brand building skills to expand the business," said Chief Executive Alex Whitehouse.
Premier Foods shares were trading 1.9% higher in London on Wednesday morning at 104.33 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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