Premier Foods plans to close a beverage manufacturing site in the UK, affecting about 300 jobs, the company said, after reporting higher third-quarter sales on robust demand and new product launches.
The maker of Mr Kipling cakes and Oxo stock cubes said it is entering into talks for the proposed closure of its Knighton site, which manufactures powdered beverages.
The company's sales rose 12% in the three months ended December 31.
'Strong Trading Performance
"We delivered a strong trading performance in our important third quarter, with sales growth of 12% compared to the same period last year," 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."
However, Premier Foods retained its full-year outlook, and said that input cost inflation remained high. The group was offsetting these pressures by raising prices annually and cutting expenditure.
The group said that its core Grocery portfolio had a 'particularly good' set of results, growing faster than the market with a 66 basis point share increase.
Cost-Of-Living Concerns
The results come as Britain's grocery sector battles costs-of-living pressures and supply disruptions due to the conflict in Ukraine, with surging food and energy prices having caused the biggest squeeze on UK household income since at least the 1950s.
"Input cost inflation remains at elevated levels, and we continue to take action to offset this inflation through a range of measures," Whitehouse added.
"With strong trading momentum as we enter our final quarter of the year, and with more brand investment and new product launches to come, we are well on track to deliver on expectations for the full year."
News by Reuters, edited by ESM – your source for the latest A-Brands news. Click subscribe to sign up to ESM: European Supermarket Magazine.
