Premier Foods on track to deliver FY expectations after strong Q3

Mr Kipling and Oxo owner Premier Foods said on Thursday that it was "well on track" to deliver full-year expectations after a strong third quarter, as it announced plans to close a plant in the West Midlands.

In an update for the 13 weeks to the end of December, the company said sales rose 12% versus the same period a year earlier, with branded sales up 8.8%. It saw a particularly strong performance in the grocery business, where sales increased 17.4%, and with demand especially buoyant in the run-up to Christmas.

The sweet treats division saw sales dip 0.9%, while sales in the international segment ticked up 10%.

Chief executive Alex Whitehouse said: "These results illustrate the continuing appeal of our portfolio of market-leading brands in such a challenging environment and demonstrate the strength and resilience of our branded growth model.

"Our major Grocery brands produced a particularly good set of results for us, continuing to grow faster than the market, taking 66 basis points of share. Across the country, people got cooking again this Christmas, demonstrating that the Best Restaurant in Town really is at home. Many of our leading brands grew strongly, with established seasonal favourites including Ambrosia custard and new launches such as Bisto pigs-in-blankets gravy granules all proving very popular."

Premier also announced on Thursday the proposed closure of its loss-making manufacturing site in Knighton, which makes mostly non-branded powdered drinks. It said the site is not aligned to its branded growth model strategy and is marginally unprofitable.