Premier Foods, the owner of iconic UK brands including Mr Kipling, Bisto, and Sharwood's, has reported a near-13% rise in pre-tax profit for 2025, comfortably surpassing City forecasts. The company hailed Mr Kipling's 'biggest year ever', driven by a new range of cake tubs designed to tap into the growing 'bitesize' trend.
Mr Kipling leads the way
Mr Kipling, known for its 'exceedingly good cakes' strapline used since 1967, achieved record sales in 2025. The standout performer was the introduction of cake tubs, which offer small, indulgent portions perfect for sharing. Chief Executive Alex Whitehouse explained: 'When people want to treat themselves, they want it to be worthwhile, but they might only want a small amount. This range caters to that trend.'
Previous innovations from Mr Kipling include birthday cake tarts, lunchbox slices, and breakfast bakes. Whitehouse added: 'Boosted by these innovations, this has been Mr Kipling's biggest ever year.'
Financial performance
The FTSE 250 company posted a pre-tax profit of £181.9 million, up nearly 13%, while headline revenue rose 2.5% to £1.175 billion for the year to 28 March. Full-year branded revenue grew 3.4%, accelerating to 4.7% in the second half, driven by new products such as the Fuel10k yoghurt and granola brand.
Clive Black of Shore Capital commented: 'Premier has beaten trading profit expectations due to balanced progress, innovation, UK market share gains, and good M&A.'
Operations and acquisitions
The St Albans-headquartered firm employs 4,000 staff across 13 UK sites. Its bakeries in Stoke and Barnsley produce 220 million packs of cakes and pies annually. Other sites include the Ambrosia creamery in Devon, the Moreton bakery in Wirral, a savoury products factory in Worksop, a warehouse in Tamworth, and a finance base in Manchester.
In September, Premier Foods acquired Merchant Gourmet, a ready meals brand. The company also produces Bisto, Homepride, Lloyd Grossman, and Sharwood's cooking sauces.
Market response
Premier's shares rose nearly 3% to 203p, their strongest level since May 2025. Black noted: 'We see this highly successful branded food manufacturer as fundamentally undervalued,' suggesting 250p would be a fairer stock price.
