Premier Foods sets first interim dividend in 19 years amid strong cash

Premier Foods PLC on Thursday said it expects top-end full-year profit and sales as it hailed Mr Kipling becoming a £200 million brand for the first time.

St Albans, Hertfordshire-based Premier Foods is a maker of branded and non-branded food, including Mr Kipling cakes and Oxo stock cubes.

Its shares were down 2.9% at 197.20 pence each in London on Thursday.

Pretax profit of £55.1 million in the 26 weeks ended September 26, was down 13% from £63.4 million profit a year before, reflecting a lower pensions credit and restructuring costs. Adjusted pretax profit climbed to £64.7 million from £62.4 million.

Revenue increased 2.5% to £514.5 million from £502.1 million.

First-half headline branded revenue was up 3.2% with slower growth of 2.5% in the second quarter. Headline sweet treats branded revenue rose 6.7% in the half-year, with headline grocery branded revenue up 2.0%.

In the half-year, Premier Foods said Mr Kipling grew revenue by 10% and became a £200 million brand for the first time.

Basic earnings per share fell 13% to 4.7 pence from 5.4p.

Premier Foods said it will pay a 1.12p per share interim dividend, its first interim payout for 19 years, "reflecting the group's strong cash generation and our confidence in continued value creation for shareholders."

The company said it remains committed to paying a progressive annual dividend, growing ahead of adjusted earnings. In recent years, Premier Foods has paid only final dividends. For financial 2026, this was 3.36 pence, up from 2.80p in financial 2027.

"With the strength of our balance sheet, we have significant firepower available to expand the size of the business through the acquisition of further, future-focused, high growth brands," it said.

Looking ahead, Premier Foods expects adjusted pretax profit and adjusted EPS to be at the top end of current market expectations.

Copyright 2026 Alliance News Ltd. All Rights Reserved.