Premier Foods - Solid finish to the year; strategic review remains ongoing

Davy Research
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Premier Foods has reported a good finish to the year, with mid-single-digit growth in UK Branded revenues (small Brexit benefit) offsetting challenges in the International channel. For FY 2019/20, Premier anticipates a material step-up in marketing and innovation spend — while this will impact profit phasing, it is becoming an increasingly important growth lever for brand owners. Management anticipates a similar level of debt reduction in FY 2019/20. While there has been an improving underlying trendline, the key catalyst remains the outcome of the ongoing strategic review.