Premier Foods has seen a return to volume growth in its latest financial quarter, with a shift from price-focused strategies to promotions and market-share gains. CEO Alex Whitehouse highlighted this transition, stating, “We exited the quarter with volume-led growth, so increased volumes at a lower price per unit.” The company has adjusted its pricing strategy due to cooling input-cost inflation, focusing on promotional activities and marketing initiatives to drive growth.
Looking ahead, Premier Foods is confident in its current position and does not anticipate the need for further price increases. The London-listed maker of Angel Delight desserts and Ambrosia custard is exploring opportunities for mergers and acquisitions (M&A) and capital investment, leveraging additional cash from the suspension of pension deficit payments.
Whitehouse emphasized the company’s focus on acquiring brands and its willingness to explore opportunities both in the UK and overseas. Premier Foods’ debt leverage ratio has dropped to a historical low of 1.2 times, providing a strong foundation for potential acquisitions. The company is open to M&A opportunities that align with its brand-building capabilities and growth strategy.
Since Whitehouse took the helm in 2019, Premier Foods has pursued a branded growth approach, closing two acquisitions in the UK and focusing on building its international presence. The company’s international revenue grew by 12% in the fiscal year 2023, driven by expansion into new markets with brands like The Spice Tailor. Premier Foods’ recent financial performance reflects its commitment to brand growth and profitability, with revenue and trading profit showing positive growth.
Looking ahead, Premier Foods aims to maintain its growth momentum while keeping profitability levels stable. The company’s focus on efficiency, innovation, and brand-building will drive future growth and profitability. With a reduced debt burden and strong financial performance, Premier Foods is well-positioned to capitalize on growth opportunities in the food and beverage industry.
As the company continues to explore potential M&A opportunities and strategic investments, its brand-building capabilities and commitment to growth remain at the forefront of its business strategy. With a solid financial foundation and a focus on innovation, Premier Foods is poised for continued success in the food and drink industry.