Premier Foods’ pre-tax profit jumped by over 200% in the first half of the financial year.
According to the British company, revenues increased by 15% in the first six months.
The St. Albans based company’s trading profit jumped 28.7% in the first half of the financial year.
Premier Foods plc (LON: PFD) said on Tuesday that pre-tax profits in the first six months of the current fiscal year were up by more than 200% year-on-year. Due to its fighting performance, it also raised its forecast for the year as a whole, in anticipation that the reintroduced nationwide ban in the UK will keep demand at its peak.
The company’s shares rose nearly 2.5% in pre-trade trading on Tuesday, but slipped about 8% when the market opened. Premier Foods is currently up 175% year-on-year on the stock market. Learn more about how to invest in the stock market.
According to Premier, revenues increased by 15% in the first half of the year
Premier Foods stated that its pre-tax profit for the first half was £50.5 million. In the same period last year, the company had reported only £15 million before tax. In a separate news release from the UK, the outsourcer Capita also said that its revenues were 11% lower in the third quarter of the financial year due to the ongoing COVID 19 crisis.
The food manufacturer reported that its revenues for the first half of the fiscal year were £421.5 million, representing annualized growth of 15%. In the second quarter alone, its revenue increased by 8.1% year on year.
The bisto sauce granulate producer and Mr Kipling-Kuchen was confident that demand would remain robust in the coming months as the government announced a new nationwide ban. The coronavirus pandemic, which has so far infected more than 1.2 million people in the UK and caused just under 50,000 deaths, has led to increased consumption at home this year.
The Prime Minister’s trading profit jumped 28.7% in the first half of the year.
According to Premier Foods:
“Although the Group faces strong comparables for the fourth quarter, it now expects full year retail profits to be above current market expectations.
The St Albans based company also said on Tuesday that its trading profit for the first half of the year, which ended on September 26, was up 28.7%. The company’s own consensus for trading profit was a lower £62 million. Also on Tuesday, property developer Land Securities revealed a larger pre-tax loss of £835 million in the first half of the year.
Premier Foods performed quite well in the stock market last year with an annual profit of around 20%. At the time of writing, Premier Foods is valued at £831.61 million and has a price-earnings ratio of 17.93.