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Premier Foods PLC (GB:PFD)
LSE:PFD

Premier Foods (PFD) AI Stock Analysis

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GB:PFD

Premier Foods

(LSE:PFD)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
200.00p
▲(16.69% Upside)
Premier Foods' overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust growth and profitability. While technical indicators suggest some bearish trends, the company's strategic initiatives and executive confidence provide a solid foundation for future growth.
Positive Factors
Revenue Growth
Consistent revenue growth in branded segments indicates strong product demand and effective market strategies, supporting long-term business expansion.
Market Share Gains
Sustained market share gains reflect competitive strength and brand loyalty, enhancing the company's position in the packaged foods industry.
Leverage Reduction
Effective leverage reduction improves financial stability and flexibility, allowing for strategic investments and resilience against economic fluctuations.
Negative Factors
Extended Producer Responsibility Levy Impact
The levy impact on profits could strain financial performance, affecting cash flow and limiting reinvestment potential, posing a challenge to sustained profitability.
Retailer Polarization
Polarized retailer performance may lead to uneven revenue streams, requiring strategic adjustments to maintain growth and market presence.
Stock Holding Adjustments in Australia
Stock holding adjustments by retailers can disrupt revenue flow and necessitate inventory management changes, affecting international growth stability.

Premier Foods (PFD) vs. iShares MSCI United Kingdom ETF (EWC)

Premier Foods Business Overview & Revenue Model

Company DescriptionPremier Foods plc, together with its subsidiaries, manufactures and distributes branded and own label food products in the United Kingdom, other European countries, and internationally. The company operates through Grocery, Sweet Treats, and International segments. It offers a portfolio of product categories, including flavorings and seasonings under the Bisto, OXO, and Paxo brands; cooking sauces and accompaniments under the Sharwood's, Loyd Grossman, and Homepride brands; and quick meals, snacks, and soups under the Batchelors and Smash brands. The company's products portfolio also comprises ambient desserts under the Ambrosia, Bird's, and Angel Delight brands; and ambient cakes under the Mr Kipling, Cadbury, and Lyons brands. It offers its products through supermarkets, discounters, convenience stores, and wholesale and food service facilities, as well as through e-commerce channels. The company was founded in 1975 and is headquartered in Saint Albans, the United Kingdom.
How the Company Makes MoneyPremier Foods generates revenue through the sale of its extensive portfolio of branded food products across multiple channels, including grocery retailers, food service providers, and online platforms. The company's key revenue streams include product sales from its well-established brands, which benefit from strong consumer loyalty and recognition. Additionally, Premier Foods engages in partnerships with major retailers to ensure prominent shelf space and promotional opportunities for its products. Factors contributing to its earnings include strategic marketing initiatives, innovation in product development to meet changing consumer trends, and operational efficiencies that reduce costs while maintaining quality.

Premier Foods Earnings Call Summary

Earnings Call Date:Nov 13, 2025
(Q2-2026)
|
% Change Since: |
Next Earnings Date:May 14, 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.
Q2-2026 Updates
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%.
Market Share Gains
Premier Foods achieved market share gains of 130 basis points over 3 years.
Profitability Improvements
Excluding the extended producer responsibility levy, trading profit is up 7% and adjusted PBT is up 10%.
Leverage Reduction
Net debt to EBITDA is only 1%, highlighting strong leverage reduction efforts.
Sweet Treats Segment Success
Sweet Treats grew 9.4% from a branded perspective.
CapEx and Strategic Investments
CapEx increased to GBP 55 million, focusing on value-creating projects with potential high returns.
International Growth
North America saw double-digit growth in Q2, and Australia experienced a 17% growth for Cake.
Successful Inorganic Opportunities
Merchant Gourmet was acquired in September and is integrating well into Premier Foods' operations.
Negative Updates
Extended Producer Responsibility Levy Impact
This levy forced a full year's charge in the first half numbers, affecting reported profit delivery.
Stock Holding Adjustments in Australia
Retailers in Australia reduced their stock holdings, impacting revenue despite strong market performance.
Retailer Polarization
Performance among retailers is polarizing, with challenges in growing sales in declining retailers like Asda.
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
Premier Foods demonstrates strong financial health with consistent revenue growth and solid profitability. The balance sheet reflects a stable financial position, although managing liabilities more aggressively could enhance stability. Cash flow generation is robust, supporting reinvestment opportunities and financial flexibility.
Income Statement
82
Very Positive
Premier Foods has shown consistent revenue growth over the past years, with a notable increase in total revenue from the previous period. Gross profit margin has remained stable, supporting robust profitability. The net profit margin has improved, indicating effective cost management and operational efficiency. EBIT and EBITDA margins are strong, reflecting healthy operational performance.
Balance Sheet
75
Positive
The company's debt-to-equity ratio is moderate, indicating a balanced approach to leveraging. Return on equity is strong, showing effective use of equity in generating profits. The equity ratio suggests a stable financial structure with a good proportion of assets funded by equity, though there is room for improvement in reducing liabilities.
Cash Flow
78
Positive
Premier Foods exhibits solid cash flow management with increasing free cash flow, indicating effective capital expenditure control and operational cash generation. The operating cash flow to net income ratio is favorable, suggesting efficient conversion of net income into cash. The free cash flow to net income ratio further supports a strong cash position, enabling potential reinvestment and debt reduction.
BreakdownTTMDec 2025Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.15B1.15B1.14B900.50M947.00M847.10M
Gross Profit424.40M439.30M432.30M327.10M335.30M297.50M
EBITDA241.80M232.10M225.30M169.70M208.30M145.70M
Net Income132.20M124.90M112.50M77.50M106.00M46.50M
Balance Sheet
Total Assets2.21B2.25B2.33B2.53B2.27B3.03B
Cash, Cash Equivalents and Short-Term Investments127.40M191.50M102.30M54.30M4.20M177.90M
Total Debt334.50M335.10M337.90M339.30M336.90M607.50M
Total Liabilities814.70M809.70M1.01B1.03B1.09B1.35B
Stockholders Equity1.39B1.44B1.33B1.51B1.18B1.68B
Cash Flow
Free Cash Flow106.90M116.70M88.90M66.90M62.00M73.10M
Operating Cash Flow140.30M158.10M121.70M90.10M85.60M85.90M
Investing Cash Flow-95.75M-41.40M-62.10M-23.20M13.80M-18.00M
Financing Cash Flow-46.00M-27.50M-20.70M-13.70M-276.20M82.20M

Premier Foods Technical Analysis

Technical Analysis Sentiment
Negative
Last Price171.40
Price Trends
50DMA
174.06
Negative
100DMA
180.00
Negative
200DMA
187.57
Negative
Market Momentum
MACD
-1.45
Negative
RSI
48.22
Neutral
STOCH
78.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:PFD, the sentiment is Negative. The current price of 171.4 is below the 20-day moving average (MA) of 171.66, below the 50-day MA of 174.06, and below the 200-day MA of 187.57, indicating a bearish trend. The MACD of -1.45 indicates Negative momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:PFD.

Premier Foods Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
£2.73B18.4715.07%2.06%6.96%28.47%
76
Outperform
£1.49B11.299.47%1.62%0.50%20.52%
71
Outperform
£458.92M11.7212.72%7.01%8.58%-15.81%
70
Outperform
£1.19B20.7712.23%0.79%7.74%30.09%
65
Neutral
£1.66B48.972.48%5.27%26.84%-81.73%
64
Neutral
£1.49B38.955.88%2.52%0.59%-41.66%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:PFD
Premier Foods
171.40
-5.09
-2.88%
GB:CWK
Cranswick
5,120.00
326.35
6.81%
GB:HFG
Hilton Food
508.00
-335.20
-39.75%
GB:TATE
Tate & Lyle
376.80
-250.19
-39.90%
GB:GNC
Greencore
273.50
92.63
51.21%
GB:BAKK
Bakkavor Group plc
252.00
117.75
87.71%

Premier Foods Corporate Events

Business Operations and Strategy
Premier Foods Launches Sharesave Plan 2025 for Key Managers
Positive
Dec 16, 2025

Premier Foods plc has announced the grant of options under its Sharesave Plan 2025 to its key managerial personnel. This plan allows eligible employees, including those in managerial roles, to purchase shares at a fixed price upon the plan’s maturity in February 2029. The initiative is part of Premier Foods’ strategy to align employee interests with company performance and enhance stakeholder engagement by offering a stake in the company.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £210.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Premier Foods Grants LTIP Awards to New Executive Leaders
Neutral
Nov 20, 2025

Premier Foods has announced the granting of Long Term Incentive Plan (LTIP) awards to two newly appointed members of its Executive Leadership Team, Catherine Thompson and Ruth McGowan. These awards, which are structured as nil cost options, are part of the company’s strategy to align leadership incentives with shareholder interests, focusing on performance metrics such as total shareholder return and adjusted earnings per share.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £280.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Other
Premier Foods Executives Acquire Shares, Signaling Confidence
Positive
Nov 19, 2025

Premier Foods plc announced recent share transactions involving its Chief Supply Chain Officer, Paul Thompson, and his closely associated person, Samantha Thompson. On November 18, 2025, Paul Thompson acquired a total of 3,467 shares at prices of 173.888p and 173.8853p per share, while Samantha Thompson purchased 1,063 shares at 173.888p per share. These transactions, conducted on the London Stock Exchange, reflect internal confidence in the company’s market position and potential growth.

The most recent analyst rating on (GB:PFD) stock is a Buy with a £280.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Premier Foods Reports Strong H1 Performance and Strategic Growth
Positive
Nov 13, 2025

Premier Foods has reported a solid performance for the first half of the fiscal year, with a 1.9% increase in headline branded revenue and a 0.4% rise in trading profit. The company is on track to meet its full-year trading profit expectations, driven by strong growth in its Sweet Treats segment and strategic acquisitions like Merchant Gourmet. The company is leveraging its Branded Growth Model to drive revenue growth and is investing in capital and marketing to support its innovation program. Premier Foods is also making strategic progress in international markets, with double-digit revenue growth for brands like The Spice Tailor and FUEL10K.

The most recent analyst rating on (GB:PFD) stock is a Hold with a £200.00 price target. To see the full list of analyst forecasts on Premier Foods stock, see the GB:PFD Stock Forecast page.

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.Date of analysis: Dec 07, 2025