Quarter 1 Trading Update

Alex Whitehouse, Chief Executive Officer

"We've delivered another quarter of strong branded revenue growth, up 4.0% and our largest brand, Mr Kipling, was one of our fastest growing brands, with sales up 9% in the quarter. This performance was driven by the continued strength of our innovation programme, including the launch of birthday cake slices, building on the success of our US trend-inspired birthday cake tarts. In Grocery, the new OXO bone broth and Angel Delight bubble jelly ranges both performed very well. We again outperformed our categories, leading to further market share increases, building on previous gains and we also gained further retailer distribution points, as we continue to land more product ranges in store."

"Our acquired brands, The Spice Tailor, FUEL10K and Merchant Gourmet all delivered double-digit revenue growth, continuing the great momentum we've built since acquiring them and they remain on track to generate approximately £100m revenue this year. Overseas, we launched FUEL10K into Europe and continued the rollout of Mr Kipling in North America. Following this good start to the year, and with further progress expected across all our strategic priorities in FY26/27, we remain on track to deliver Trading profit expectations5 for this year."

Trading update

Grocery

In Grocery, branded revenue increased by 3.0%, with further market share gains, as total Grocery revenue grew 1.3%. The momentum of the Group's new product development programme continued at pace, with the launch of Ambrosia custard pouches, Loyd Grossman premium cooking sauce kits and complete nutrition focused Nissin Kanzen meals. Prior year launches of OXO Bone Broth and Angel Delight Bubble Jelly contributed to strong sales and share gains for these two brands. Revenue from entries into new categories increased by 16%, with Cape Herb & Spice benefiting from consumers seeking to add flavour and variety to meal occasions in addition to recent retailer distribution gains. The Group's acquired brands each delivered double-digit revenue growth in the quarter; Merchant Gourmet introduced a new range of Gourmet Baked Beans, FUEL10K gained further market share with Chocolate Granola continuing to hold the leading position in the UK market and The Spice Tailor core Indian kits performed particularly strongly. In Ireland, sales were lower year on year following a change from a distributor, direct to a key customer. Non-branded revenue was £2.5m lower due to some planned contract exits, with this trend expected to improve in the second half of the year.

Sweet Treats

Mr Kipling continued its positive momentum with another very good quarter, driving Sweet Treats branded revenue up 6.6% on last year. New product development was again a major contributor to this growth, with recent launches such as Birthday cake slices and a new range of whirls flavours, such as Cookies & Cream and Custard Cream. This quarter also benefitted from prior year launches of the already successful Mr Kipling cake bites tubs and breakfast bakes, which helped Mr Kipling outperform the cake category again, gaining further market share. Non-branded Sweet Treats revenue increased 5.3% to £7.9m in the quarter due to increased volumes on pies and tarts and a new contract win; we expect modest growth for the remainder of the year.

International

Revenue in the Group's International business increased by 6%3 at constant currency (and 7% on a reported basis) in the quarter. Europe grew sales double digits following the encouraging launch of FUEL10K ranges in the Netherlands. Revenue in North America also increased strongly due to recently achieved distribution of Mr Kipling cake slices and pies in the USA. In Australasia, The Spice Tailor sales grew over 20%, as it benefitted from a multi-channel marketing campaign, while retailer stock levels of cake began to normalise.

Outlook

Following a good first quarter, the Company remains on track to deliver Trading profit expectations5 for this year. The Group continues to execute on delivering against all pillars of its growth strategy, leveraging its proven Branded Growth Model, and is well positioned to generate further progress in the medium-term.

As one of Britain's largest food producers, we're passionate about food and believe each and every day we have the opportunity to enrich life for everyone. Premier Foods employs over 4,000 people operating from 13 locations across the country, supplying a range of retail, wholesale, foodservice and other customers with our iconic brands which feature in millions of homes every day.

We are home to some of the nation's best-loved brands, including Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr Kipling, Oxo and Sharwood's. More recently, we have expanded our portfolio of leading brands through acquisition to include The Spice Tailor, FUEL10K and Merchant Gourmet. In line with our purpose of 'Enriching Life Through Food', we create great tasting products that contribute to healthy and balanced diets, while committing to nurturing our people and our local communities, and going further in the pursuit of a healthier planet.

Grocery