Premier Foods H1 profit falls as lockdown benefit fades

Mr Kipling and Oxo owner Premier Foods reported a decline in first-half profit and revenue on Tuesday as the benefit of lockdowns faded, with people eating out more as restrictions were lifted.

In the 26 weeks to 2 October, adjusted pre-tax profit dipped 2.9% to £46.4m, with revenue down 6.5% to £394.1m. Trading profit fell 12.2% to £57.8m and adjusted earnings per share were 3.8% lower at 4.4p.

Branded revenue fell 6.1% compared to the previous year, "due to lapping effect of exceptional pandemic-related volumes," the company said.

On a two-year basis, however, adjusted pre-tax profit was up 46.3% and revenue was 7.5% higher.

Premier said: "The group enters the second half of the year with strong momentum. It has a series of exciting brand plans, and with expansion into more new categories, it is well placed to deliver further strategic progress,” it said.

"It continues to successfully manage and navigate through industry wide challenges across the supply chain and has robust plans in place to respond to them. The group will benefit from substantially lower interest costs from its earnings enhancing refinancing and is on track to deliver against its profit expectations for the full year."

At0830 GMT, the shares were down 6% at 107.28p.