Premier Foods’s pre-tax profit jumps over 200% in the fiscal first half

Premier Foods’s pre-tax profit jumps over 200% in the fiscal first half
Written by:
Wajeeh Khan
November 10, 2020
  • Premier Foods’s pre-tax profit jumps over 200% in the fiscal first half.
  • The British firm says revenue came in 15% higher in the first six months.
  • The St. Albans-based company's trading profit jumps 28.7% in fiscal H1.

Premier Foods plc (LON: PFD) said on Tuesday that its pre-tax profit in the first six months of the current fiscal year came in more than 200% higher on a year over year basis. On the back of its hawkish performance, it also raised its guidance for the full-year in anticipation that the reimposed nationwide lockdown in the United Kingdom will keep demand at its peak.

Shares of the company jumped close to 2.5% in premarket trading on Tuesday but slid roughly 8% on market open. Premier Foods is currently 175% up year to date in the stock market. Learn more about how to invest in the stock market.

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Premier says revenue came in 15% higher in the first half

Premier Foods said that its pre-tax profit in H1 printed at £50.5 million. In the same period last year, it had reported only £15 million of pre-tax profit. In separate news from the UK, outsourcer Capita also said that its revenue in the fiscal third quarter was 11% lower due to the ongoing COVID-19 crisis.

The food manufacturer said that its revenue in the fiscal first half registered at £421.5 million that represents a 15% annualised growth. In the second quarter alone, its revenue posted an 8.1% year over year increase.

The maker of Bisto gravy granules and Mr Kipling cakes expressed confidence that demand will remain robust in the upcoming months as the government announced a new nationwide lockdown. The Coronavirus pandemic that has so far infected more than 1.2 million people in the UK and caused a little under 50 thousand deaths, resulted in increased home-based consumption this year.

Premier’s trading profit jumps 28.7% in fiscal H1

According to Premier Foods:

“Although the group faces strong fourth-quarter comparatives, it now anticipates trading profit for the full year will be ahead of current market expectations.”

The St. Albans-based company also said on Tuesday that trading profit jumped 28.7% in fiscal H1 that concluded on 26th September. Company’s own consensus for trading profit stood at a lower £62 million. Also on Tuesday, property developer Land Securities revealed a broader £835 million of pre-tax loss in the first half.

Premier Foods performed fairly upbeat in the stock market last year with an annual gain of about 20%. At the time of writing, Premier Foods is valued at £831.61 million and has a price to earnings ratio of 17.93.