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 per cent. It said it expects annual trading profit to be at the top end of market expectations.
Premier Foods made the announcement as it also revealed a major shake-up of its pensions schemes, following a year-long strategic review at the business.
The company said it had agreed to a segregated merger of its pensions schemes that will save it £4 million annually from fiscal year 2020 and also provide “greater funding certainty” for its pension schemes members.
It 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.”
Premier Foods chairman Colin Day said: “The segregated merger of the company’s pensions schemes we are announcing today represents a ground-breaking agreement which is set to unlock benefits and value for all stakeholders in the company, leveraging the strength of the RHM scheme and substantially improving the position of the Premier Foods schemes.
“With a buyout of the RHM scheme getting progressively closer, any resulting surplus would be transferred to the remaining schemes and therefore result in significantly reduced pension deficit cash contributions by the company in future years.
“The agreement we have reached follows extensive and highly collaborative discussions with all connected stakeholders, and marks a positive conclusion to the company’s strategic review.
“The group will continue to pursue its successful branded growth model strategy, opening up further opportunities to deliver value in due course.” – Agencies
