Premier Foods Share Discussion Threads

[18bt] 24/7/2023 07:21

Interactive: Easing inflation a boon to Premier Foods

Mr Kipling-owner Premier Foods (PFG) should benefit from a cooling in inflation that will prevent the need for further price hikes, says Interactive Investor.

The Citywire Elite Companies AAA-rated business reported first-quarter sales up 21% and said it expects full-year profit to come in at the top end of market expectations. It also cheered investors with news that the recent period of input cost inflation is past its peak and no further price rises are planned for the rest of the year.

‘The company behind Mr Kipling cake and Oxo cubes has enjoyed strong sales thanks to the resilience of its product offering,’ said analyst Victoria Scholar.

‘Its well-known, well-loved brands in the consumer staples category have enjoyed strong sales despite price increases and the cost-of-living crisis.’

Scholar said its brand investment and product innovation have supported demand and allowed it to forecast ‘strong full-year performance’.

‘With inflationary pressures starting to cool, pressure on margins is easing, allowing the company to refrain from further price hikes, which should help support demand,’ she said.

[km18] 20/7/2023 13:52

Premier Foods plc issued a Q1 Trading Update including FY 23 guidance this morning. Q1 Group sales were up 21.1% versus FY22, Branded sales were up 17.5%. The Group recorded further grocery market share of 94bps during the quarter. Guidance was also raised, FY23/FY24 trading profit is now expected to be at top end of market expectations, currently £162.0m - £165.4m or around 24% growth yoy. Valuation remains reasonable with forward PE ratio at 10.3x second quartile for the Food & Tobacco sector. The balance sheet is solid with net debt £274m at end FY23, gearing ratios are comfortable. The dividend yield is a little stingy at 1.4%, but the share price has solid positive momentum. Not a bad Consumer Defensive to own in a portfolio particularly with the UK economy floundering. BUY....

...from WealthOracle

[18bt] 20/7/2023 06:33

Excellent update. Guiding to top of expectations at the end of Q1 leaves a lot of room for further outperformance. Interesting comment re cost inflation - backing up the CPI figures yesterday. Should be good for margin maintenance.
Glad I topped up a few weeks ago at around 125p. This should get better recognition as a well-run company in a defensive sector, but the woes of the past still sully the name. Prospectve PER should be around 10x with potential for the divi to increase more than forecast.

Net borrowing should come down poss by end FY2024 to 1x EBITDA. Now a lot of room for further investment or acquisitions.

[18bt] 18/5/2023 06:23

Revenue, EBIT, EPS all higher and net debt slightly lower than indicated in the 7 Mar update, so exceeding even those upgraded expectations. 10x PER looks v good value for a company which has the confidence to increase it's dividend by 20% (albeit of the low base). Glad I topped up significantly in my SIPP last week. Always a danger of expectations getting too far ahead, but the dividend should keep increasing quite fast, so I'm tageting a 20% upside in the next 12 months and a bit more if they can get the M&A right.

[royaloak] 17/5/2023 14:36

Not a clue! They have had a good run since the trading statement so guessing some cautious punters may be selling or reducing, I have not sold just keeping my fingers crossed!

[ali47fish] 17/5/2023 07:20

so what are we expecting to morrow

[18bt] 07/3/2023 07:04

Cracking update... looks about £8m ahead of EBIT consensus c5% increase.

[isis] 03/2/2023 01:12

They exercised options and that's all..........very cheaply too I must add. ;)

[geckotheglorious] 02/2/2023 17:33

......because they're collectively pessimistic

[ali47fish] 02/2/2023 17:12

why are dirs selling to gether

[18bt] 19/1/2023 07:51

Strong trading update. Feels like it could lead to small upgrades in profits. Closure of Knighton is sensible even if devastating for the 300 employees.

[18bt] 16/1/2023 07:29

Trading update due this week

[18bt] 16/11/2022 07:25

Decent set of interims on first read. Disappointed no progress on the pension scheme merger, but improved surplus.

[km18] 20/7/2022 11:22

Premier Foods (PFD) issued a Q1 trading update for the 13 weeks ended 2nd July this morning. Q1 Group sales were up 6.0% versus prior year, branded sales by 4.2%. International sales were up by 12% and the Group is firmly on track to meet FY23 expectations. Good progress has been made in recovering industry wide input cost inflation through a range of measures, including cost efficiency and pricing action and the Group continues to monitor the situation closely. Valuation is attractive with forward PE ratio under 10x, the balance sheet is solid, although the dividend yield is stingy at just 1.3%. A solid consumer defensive name with scope for modest growth and some upward rerating. Certainly worth monitoring, not a bad addition to a portfolio in the current nervous macro environment. BUY....

...from WealthOracle

[qs99] 18/5/2022 10:19

Well said, in for the ride, should see increasing yield as well IMO...DYOR

[18bt] 18/5/2022 06:50

The rating should now reflect the complete turnaround of this from problem child to growth and focussed food company with increasingly strong brands. Looks a well run business now, but still more to come including on the pensions side.

[qs99] 18/5/2022 06:18

What a cracking set of results....DYOR

[isis] 07/4/2022 13:52

New high I think - no sign of Buywell - lol

[18bt] 06/4/2022 07:44

Could be a pension deal finally coming through? That would involve a lot of poeple to leak it.

[qs99] 06/4/2022 07:25

7% rise, look at graph since £1, this IMO looks suspicious, wonder if it goes over 10% they will be forced to make an announcement? Not far off....DYOR

[qs99] 06/4/2022 07:23

wonder why the spike? ANyone heard sniffs of it being a takeover target? DYOR

[riverman77] 03/3/2022 12:16

Massive surge in wheat prices and other foodstuffs. Just wonder how much they'll be able to pass these increases on - if there is a big squeeze in living costs then surely people will switch from Mr Kipling to the cheaper own brand labels. In the last month wheat up 45%, palm oil 21%, and corn 20%