Sales jump for Premier Foods as store cupboards are stocked
Mr Kipling maker Premier Foods has seen sales jump in recent weeks as the coronavirus outbreak has driven demand for store-cupboard items.
The food group, which also makes Ambrosia and Bisto, said UK sales in March jumped by around 15.1 per cent in March, with UK sales for the three months to the end of March rising 7.3%.
Premier Foods, which has its Knighton Foods subsidiary at Adbaston, near Stafford, made the announcement as it also revealed a major shake-up of its pensions schemes, following a year-long strategic review at the business.
It said this will involve a merger of its three separate pension schemes and will reduce the cash contributions from the group, as Premier looks to save money.
It comes on the back of surging supermarket sales over the past month, as shoppers have stocked up on essentials.
Premier Foods said that during "this challenging time" its manufacturing and distribution are working at "maximum capacity" and demand continues to be high.
It said it has therefore given each factory worker two additional days of annual leave and a £250 cash bonus.
The company added: "Volumes have started to reduce from the exceptional levels seen in March, although are still expected to continue to be higher than average patterns of demand.
"This reflects more meals being eaten at home than usual due to recent measures set out by the Government and hence increased demand for the group's product ranges."
Knighton Foods, set up in 2014, produces powdered products and is where Angel Delight is made. The factory is on the Shropshire border next to the Shropshire Union Canal.
Premier said it now expects to post a trading profit for the year ending March 28 at the "top end of market expectations" following a strong March period.
The debt-laden business has come under fire from activist investors in recent years, resulting in a leadership shake-up last year.
