Premier Foods’ DB pensions deficit falls £400 million

Premier Foods-2015

Premier Foods’ defined benefit (DB) pension schemes combined deficit has fallen by almost two-thirds in the 15 months to April 2015.

The firm, which owns the Oxo, Mr Kipling and Bisto brands, revealed in its preliminary results that its pension deficit shortfall had dropped from £603.3 million to £211.8 million over the period.

Gavin Darby, chief executive officer of Premier Foods, said: “For the last quarter, I am pleased to again report an improving sales trend, which has benefitted from a combination of brand investment, exciting new products and strong retail execution.

“While it is encouraging to note the return of volume growth to both our categories and the wider grocery market, we expect the near-term trading environment to be challenging, and our expectations for the year are unchanged.

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“I remain confident that our strategy of investing in brands, innovation and infrastructure is the right one for Premier Foods, and see increasing evidence that our efforts are starting to pay off.

“The Board is firmly focussed on the creation of future value, and believes that its investment and growth strategies, combined with a focus on cost efficiency, trading profit delivery and organic de-leveraging, are well positioned to deliver success.”