Premier Foods reinstates interim dividend after 19 years and raises trading profit growth outlook to 5%
Key Facts
Premier Foods announced on 12 November 2026 that it would resume interim dividend payments for the first time in 19 years, setting the dividend at 1.12 pence a share. The company said the move reflected strong cash generation, lower leverage and confidence in creating shareholder value. The decision coincides with an upgrade to the group’s outlook for financial year 2026/27, with trading profit expected to grow by about 3% to 5% compared with financial year 2025/26. It also raised its forecasts for adjusted profit before tax and adjusted earnings per share to the upper end of current market expectations. The company said the dividend also reflected confidence in its medium-term outlook. It will be paid to shareholders on the register on 20 November, with payment on 18 December 2026.
Management linked the outlook upgrade to a change in the financing structure following the redemption of the fixed-rate bond. The chief executive said the company now had an "updated capital structure" that gave it flexibility to deliver its growth strategy, alongside lower financing costs than planned. The company added that net finance costs were expected to be about £18 million in financial year 2026/27. In its statement, the company did not link the dividend to additional capital made available by the bond redemption, but to strong cash generation and lower leverage. Lower financing costs provide a financial backdrop to the higher forecasts for adjusted profit before tax and earnings per share, alongside expected trading profit growth.
In the 26 weeks ended 26 September 2026, trading profit rose 2.4% to £72.2 million, while adjusted profit before tax increased 3.8% to £64.7 million. Group revenue was £514.2 million, up 2.4% on the comparable period, according to Sharecast, while statutory operating profit fell 13% to £63.7 million. The group reported statutory post-tax profit of £41.0 million, down £5.8 million from the corresponding half. The company attributed the decline to higher restructuring costs and a lower pension credit. Adjusted and trading measures therefore rose, while statutory profits fell under the effect of restructuring and pension items.
Revenue from the group’s key branded products grew 3.2% in the first half of financial year 2026/27, with the Sweet Treats division up 6.7% and Grocery up 2.0%. The company said it made further market-share gains in both divisions, while revenue from new categories rose 15%. Some grocery categories were affected by extended periods of hotter weather, the company said. International business revenue rose 8% in the first half, with the FUEL10K brand making its European debut. The chief executive said expansion into new categories and overseas markets, together with the acquisition strategy, had made the business and brand portfolio "more resilient to seasonal volatility".
Premier Foods shares fell during the results session, down 3% at 196.4 pence at 10:30 GMT on 12 November, according to Sharecast. The move came on the day the company announced its half-year results and new dividend, after the figures showed growth in trading profit and branded revenue alongside declines in statutory post-tax profit and statutory operating profit. The share price timing captures the stock’s reaction during the announcement session; the available figures do not include the closing price. The company listed its first-half results in its financial calendar for 12 November 2026. The open calendar did not specify a later date for the next results announcement.