The FTSE 250-listed Premier Foods PLC (GB:PFD) disclosed a significant uptick in its third-quarter sales for the Fiscal Year 2023-24, marking a 14.4% year-over-year increase. Additionally, the company achieved a 121 basis point expansion in its market share, driven by its “record-breaking Christmas performance.”
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Following the update, Premier Foods’ share price was trading up by 1.14% at the time of writing.
Premier Foods is involved in the manufacturing and distribution of branded food products, including Ambrosia, Marvel, Mr Kipling, and many more.
Strong Performance in the Third Quarter
During the quarter, Premier Foods’ grocery sales were up 11.9%, and sweet treat sales increased 21.3%.
The company delivered its “biggest-ever Christmas,” as consumers welcomed new products. The company also witnessed significant demand for its holiday selections, including Mr Kipling’s Best Ever Signature mince pies, with total sales of 190 million units reflecting a growth of 4 million pies over last year.
Moving forward, Premier Foods is on track to meet its previously stated profit expectations. The anticipated trading profit for the financial year 2023-2024 is expected to be approximately 10% higher, surpassing the £157.5 million reported in FY22-23
Is Premier Foods a Good Share to Buy?
Today, analyst Andrew Wade from Jefferies expressed his confidence in the update and confirmed his Buy rating on the stock. While Wade kept his pre-tax profit estimate unchanged, he sees potential for further improvement if the current sales momentum continues throughout Q4. His price target of 180p predicts a growth rate of about 28%.
According to TipRanks consensus, PFD stock has received a Moderate Buy rating, backed by two Buys and one Hold recommendation. The Premier Foods share price target is 166.67p, which is 17.5% higher than the current trading level.
