Premier Foods Says It Can Target Bigger Acquisitions as Debt Falls to £131m

Premier Foods is ready to pursue bigger acquisitions after cutting debt to £131m, chief executive Alex Whitehouse said, as the UK food manufacturer upgraded annual profit forecasts and reintroduced an interim dividend for the first time in 19 years. The Grocer reported the comments alongside the group's interim results.

Whitehouse Targets Future-Focused Brands

Whitehouse said cheaper financing arrangements and resilient trading had given Premier Foods the balance sheet strength for "several further acquisitions". The company, which sells Mr Kipling, OXO, Bisto and Ambrosia through major British supermarket chains, has acquired The Spice Tailor, Fuel10K and Merchant Gourmet since 2022, and all three achieved double-digit growth in the six months to 26 September.

"We're trying to buy future-focused brands, on trend with fundamental changes in eating habits," Whitehouse said. "If we apply our branded growth model to them, we can scale them up to make them the big brands of the future." With cheaper financing in place, he said Premier can now target "bigger" deals.

Premier is understood to have come close to buying premium pizza brand Crosta & Mollica this summer but walked away at the last minute. Crosta instead entered a joint venture with European Pizza Group, a Nestlé spin-off, Yahoo reported; the combined entity has €1 billion in retail sales and Crosta & Mollica's turnover rose to £67.6m.

Headline branded revenues rose 3.2% to £467.3m in the half, while pre-tax profits were up 3.8% to £64.7m. Whitehouse said the portfolio is now "significantly more resilient" to seasonal changes, as sweet treats and acquired brands covered weaker trading in stocks, gravies and soups during the hot summer.

Premier Foods' Full-Year Trading Profit Outlook

According to akta.pro company records, Premier Foods reported revenue of £1.17 billion for the 12 months ended 28 March 2026, up 2.5% from £1.14 billion, with trading profit above £200m, nearly 7% higher than £187.8m the year before. The same records put full-year trading profit expectations for FY26/27 at £209m to £214m, up from £200m in 2025/26.

Earlier Results and Leadership Moves

In July 2026, The Grocer reported branded sales up 4% to £225.1m for the 13 weeks to 27 June 2026, with overall revenues up 2.7% to £246.4m, helped by Mr Kipling's 9% sales growth. In November 2026, Hrtoday reported that Premier Foods appointed Michelle Parczuk as chief people officer, reporting to the CEO and joining the executive leadership team.

What Comes Next for Premier Foods

Jefferies analyst Andrew Wade said he expects "the ongoing execution of the strategy to deliver robust profit progress in the years ahead", adding that the company had "significant firepower" for M&A. Premier Foods' own announcement of the interim results set out the upgraded profit forecasts and the dividend reintroduction.