Premier Foods Plc · LSE:PFD
Premier Foods — FY2024/25 Earnings Presentation
40 slides from Premier Foods's earnings presentation, May 15, 2025
Slide 1: Preliminary results for 52 weeks ended 29 March 2025
Preliminary results for 52 weeks ended 29 March 2025 15 May 2025
Slide 2: Alex Whitehouse, CEO
(~ Woremen FOODS Alex Whitehouse CEO Ga (-exichine life THROUGH FOOD’
Slide 3: Branded volume driving trading profit ahead of expectations
Branded volume driving Trading profit ahead of expectations Revenue1 Branded Revenue1 UK market share2 Trading profit £1,148m £1,008m +21bps £188m +3.5% +5.2% vs prior year +6.0% Adjusted PBT Adjusted eps Net debt/EBITDA Dividend £169m 14.5p 0.7x +62% Dividend match +8.8% +7.3% £92m debt reduction r
Slide 4: Delivery against all strategic pillars
Delivery against all strategic pillars Underpinned by proven branded growth model 1 2 3 4 5 Infrastructure Inorganic Grow the UK core Category expansion International investment opportunities £41m +46% +23%2 +4.4%1,2 +26% vs prior year UK Branded Investing in efficiency Revenue growth from Internati
Slide 5: Earnings growth and leverage reduction converted to value creation
Earnings growth and leverage reduction converted to value creation Revenue (£m)1 Trading profit (£m)1,2 Pandemic 1,148 +6.3% 188 elevated 1,109 +7.2% CAGR volumes CAGR 177 1,006 158 934 148 148 901 847 133 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/2
Slide 6: Continued progress on our sustainability commitments
Continued progress on our sustainability commitments PRODUCT PLANET PEOPLE +1.1 million 9% 10% Scope 1 & 2 emissions 1 million meals reductions Non-HFSS sales1 20% donated for first time Adopted FUEL10K new Water Graded Granola range and Human 48% management roles held by now non-HFSS Rights Gender
Slide 7: Duncan Leggett, CFO
(Cremer FOODS Duncan Leggett CFO
Slide 8: A year of strong financial progress
A year of strong financial progress 1 Another year of strong profit and eps progression Net debt reduction of £92m gives us increasing capital 2 allocation options Further pensions progress with full merger and dividend 3 match removal 8
Slide 9: Adjusted earnings up 8.8% and dividend raised 62%
Adjusted earnings up 8.8% and dividend raised 62% £m FY24/25 Change vs PY Comments Branded revenue 1,008 5.2% Consistent volume driven growth through Branded growth model Non-branded revenue 140 (7.2%) Contract exits and branded volume growth Total revenue 1,148 3.5% Divisional contribution 265 5.4%
Slide 10: Branded volume growth in both Grocery & Sweet Treats
Branded volume growth in both Grocery & Sweet Treats Grocery (£m) FY24/25 Change vs PY Comments Branded revenue 774 4.6% Broad volume growth in UK core and strategic pillars Non-branded revenue 75 (8.0%) Noodles contract exit and lower volumes Total revenue 849 3.3% Divisional contribution 229 5.5%
Slide 11: Net debt reduction of £92m; leverage now 0.7x EBITDA
Net debt reduction of £92m; leverage now 0.7x EBITDA Cash flow bridge FY25/26 guidance £m £m Small Working capital outflow 300 £52m Depreciation (incl. software amortis’n) £28m 250 236 213 Amortisation of brands £20m Capital expenditure c.£50m 200 Restructuring - cash c.£5m 7 144 Interest – cash £20
Slide 12: Pensions full merger and dividend match removal
Pensions full merger and dividend match removal Full resolution expected by end of 2026 Re-cap on progress & timeline Full merger announced Segregated £5m Suspension Triennial merger of reduction Full of full DC1 valuation RHM & PF in DC resolution payments date schemes payments Dividend match2 remo
Slide 13: Value creation through capital allocation framework
Value creation through capital allocation framework Capex M&A Dividends Pensions • Deficit payments • Strong pipeline of opportunities to • The Spice Tailor & FUEL10K were • Expect to pay a progressive suspended enhance efficiencies through selected very carefully and are dividend • Net surplus now
Slide 14: Alex Whitehouse
PREMIER FOODS (- vy a) 2) 5 ° r= 7 f= = x ao <x oO Ww O g life Ga (-exichin THROUGH FOOD’
Slide 15: Our strategy and purpose
Our strategy and purpose Extending our brand building capabilities beyond our UK core 1 2 3 4 5 Continue Supply chain Expand UK into Build International Inorganic to grow the UK core investment new categories businesses with opportunities critical mass A strong and growing Invest in operational Buil
Slide 16: Our branded growth model is at the core of what we do
Our branded growth model is at the core of what we do 1 Leading brand positions 2 Insight driven new products • Our brands are leaders in their core categories • Launch new products linked to key consumer trends • High household penetration • Major focus on health & nutrition 3 Sustained marketing i
Slide 17: Strong UK branded volume growth and market share gains
1 Strong UK branded volume growth and market share gains UK Branded Volume & Revenue1 Market share2 YoY growth Volume Value 8.0% 4.4% +80bps +21bps vs prior year vs prior year UK Branded Volume UK Branded Revenue ▪ Strong and consistent volume trends reflected in market share gains ▪ Branded growth
Slide 18: Our Premiumisation strategy is a clear growth driver
1 Our Premiumisation strategy is a clear growth driver Mr Kipling Signature Bites Ambrosia Deluxe FY YoY revenue growth FY YoY revenue growth £m £m +78% +45% FY23/24 FY24/25 FY23/24 FY24/25 ▪ Range aligns very strongly to indulgence consumer trend ▪ Deluxe offer extended to include Rice pots in new
Slide 19: Nissin delivered another year of strong double-digit growth
1 Nissin delivered another year of strong double-digit growth Our fastest growing brand over 5 years Disrupting the noodles category New products Revenue (£m) Market share trend1 65% +41% 5yr CAGR 40% FY20/21 FY21/22 FY22/23 FY23/24 FY24/25 3 sub-brands FY19/20 FY20/21 FY21/22 FY22/23 FY23/24 FY24/2
Slide 20: We employ a range of brand investment strategies
1 We employ a range of brand investment strategies Television advertising Out of home Digital / Influencers ▪ Many of our brands continue to benefit from mainstream Television media advertising 20
Slide 21: Great instore execution, collaboration & more distribution gains
1 Great instore execution, collaboration & more distribution gains Supported by strong retailer relationships 1 Impactful instore activity Cross-category seasonal promotional activity Distribution points +501bps Grocery categories +309bps Cake category ▪ Distribution gains reflected in strong volume
Slide 22: Actively increasing infrastructure investment
2 Actively increasing infrastructure investment Deep pipeline of attractive payback projects to fuel increased brand investment Further increases in investment Growth Cost reduction £m Grocery Sponge puddings phase two c.50 • New pot filling and • Robotic 41 packing line automation of • Improves cap
Slide 23: Another strong year for New categories, sales up +46%
3 Another strong year for New categories, sales up +46% Revenue trend since launch Ambrosia Porridge £m Market share Distribution Range 5 1 13% 20%2 • In top 2 quartiles • Now available in all full • Latest variant across all customers range retailers Sweet Cinnamon • Further TV • Expecting further
Slide 24: International revenue more than doubled in five years
4 International revenue more than doubled in five years Double-digit growth in all target regions this year Progressive revenue growth over 5 years Leveraging the Branded Growth • Mr Kipling and The Spice Tailor Model benefitted from TV advertising £m Australia & • Sharwood’s family jar cooking New
Slide 25: Double-digit revenue growth for The Spice Tailor
5 Double-digit revenue growth for The Spice Tailor Extending into new cuisines Instore activity Further range extensions Japanese Vietnamese Chinese Brand investment • Impactful displays to drive sales alongside Sharwood’s • Pad Thai Noodles and authentic Australia aired first TV campaign Digital ac
Slide 26: A great year from FUEL10K with exciting innovation pipeline
5 A great year from FUEL10K with exciting innovation pipeline Now the UK’s No.1 Granola1 A wealth of new product development FY24/25 launches FY25/26 launches No.1 Brand investment • 25g Protein breakfast • First out of home shakes media activity for FUEL10K, to drive brand awareness • Multigrain fl
Slide 27: We continue to actively assess value-adding M&A opportunities
5 We continue to actively assess value-adding M&A opportunities Brand equity ▪ We are focused on ▪ Assets of most acquiring brands with Application of interest are where Product innovation strong potential Branded we believe we can Branded Growth add value by applying assets ▪ The Spice Tailor and M
Slide 28: Strong plans for FY25/26 across all our strategic pillars
Strong plans for FY25/26 across all our strategic pillars 1 UK branded core 2 Infrastructure investment 3 New categories 4 International Strong new product plans and Growth & capacity Ambrosia ANZ media investment • ANZ: Build on leadership positions in cake & Indian sauces Expanding capacity to rea
Slide 29: Another very good year
Another very good year Strong financial performance and good progress against all 5 strategic pillars 1 ― Strong volume driven branded revenue growth 2 ― Further profit delivery, ahead of previously upgraded expectations Summary 3 ― Continued good progress against all strategic pillars 4 ― Significa
Slide 30: Some final thoughts to leave you with
Some final thoughts to leave you with…. 1 We have very strong brands with a proven Branded Growth Model 2 We have a strong track record of growth and grown faster than the market 3 We have plenty of opportunity to scale the business up over time through our 5 pillar strategy 30
Slide 31: Q&A
( NPremes Q&A Ga (-exichine life THROUGH FOOD’
Slide 32: Appendix
PREMIER FOODS Appendix
Slide 33: Cautionary statement
Cautionary statement This presentation may contain "forward-looking statements" that are based on estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements are all statements other than statements of historical fact or statements in the present tense, and can b
Slide 34: Definitions
Definitions ▪ The period ‘FY24/25’ refers to the 52 weeks ended 29 March 2025, unless where otherwise stated. The period ‘FY23/24’ refers to the 52 weeks ended 30 March 2024, unless where otherwise stated. ▪ Trading profit is defined as Profit/(loss) before tax before net finance costs, amortisation
Slide 35: Why invest in Premier Foods?
Why invest in Premier Foods? 1 Portfolio of category leading brands 2 Proven branded growth model 3 Strong margin profile • Market leaders in • Sector leading the UK in our five • Strong track record margins main categories of delivering comparable with • 89% of UK branded revenue 8.8% large-cap pee
Slide 36: Statutory vs Headline Revenue
Statutory vs Headline Revenue Quarter 4 Full Year £m Headline @ Headline @ Statutory Charnwood Headline constant Statutory Charnwood Headline constant currency currency Grocery Branded revenue 201.9 - 201.9 202.2 773.3 - 773.3 774.3 Non-branded 17.4 - 17.4 17.3 76.9 (2.2) 74.7 74.7 revenue Total rev
Slide 37: Adjusted earnings per share
Adjusted earnings per share £m FY24/25 FY23/24 Trading profit 188 177 Net regular interest (19) (22) Adjusted PBT 169 155 Tax (25%) (42) (39) Adjusted earnings 127 117 Weighted average shares in issue (million) 874.4 862.4 Adjusted earnings per share (pence) 14.5p 13.5p 1 – Excludes Knighton Foods &
Slide 38: Interest and taxation
Interest and taxation £m FY24/25 FY23/24 Change Senior secured notes interest 12 12 - Interest Bank debt interest 5 8 3 17 20 3 Amortisation of debt issuance costs 2 2 - Net regular interest 19 22 3 ▪ Tax charge of £36m, due to operating activities charge at UK corporation tax rate of 25% ▪ Notional
Slide 39: Pensions
Pensions Accounting valuation 29 March 2025 30 March 2024 Change ▪ Liabilities decreased by £399m to £2,564m ▪ Asset values £352m lower at £3,213m Assets 3,213 3,565 (352) ▪ Assets reduced due to lower Government bond valuations; discount rate increased by 95bps to 5.75% Liabilities (2,564) (2,963)
Slide 40: Summarised balance sheet
Summarised balance sheet £m 29 March 2025 30 March 2024 Property, plant & equipment 204 190 Intangibles / Goodwill 974 992 Deferred tax asset 17 22 Retirement benefit assets 649 810 Non-current Assets 1,844 2,014 Working Capital - Stock 102 99 - Debtors 115 116 - Creditors (260) (265) Total Working