Premier Foods Shares Rise: ‘Ongoing Momentum is Building’

Premier Foods (LON: PFD) shares rose over 5% on Friday and have gained a further 0.4% in early Monday trading, extending their year-to-date gain to around 13.6%. 

The rally follows strong full-year results. Following the earnings release, analysts at Shore Capital provided bullish commentary on the stock. 

In a note on Monday, Shore Capital said Premier Foods (a “house stock” at the firm) delivered “very good FY25 results,” with branded sales up over 5%, adjusted pre-tax profit ahead by approximately 9%, and earnings per share rising 7.3%. 

The firm also declared a 62% increase in its dividend, significantly ahead of expectations.

“All metrics were above our expectations,” analysts wrote, noting the group’s strengthened balance sheet, with net debt to EBITDA at just 0.7 times. 

While FY26 forecasts remain unchanged due to an expected increase in finance costs linked to loan note refinancing, Shore Capital highlighted growing organic investment and expanding strategic flexibility.

“Ongoing momentum is building,” the firm said, pointing to increased capital expenditure and a stronger position for potential mergers and acquisitions. 

Shore Capital added that the removal of a long-standing pension scheme match has also allowed for a substantial boost in shareholder returns.

Premier Foods shares currently trade around 213p. Shore Capital concluded: “There is an awful lot of good balanced progress to like here, supporting ongoing capital appreciation.”