A focus on healthy food has perked up annual profits at Premier Foods PLC (LON:PFD) as it battles against discounters.
Premier has expanded products with a “nutritional benefit” such as Mr Kipling Snack Pack slices containing wholesome ingredients such as oats, cranberry and coconut.
The group has also launched Bisto Best Reduced Salt and cooking sauces containing more vegetables within its Loyd Grossman, Sharwood's and Homepride ranges.
Premier has grown in line with discounters in the last year as it has focused on non-branded products for that sector.
Group sales in the 52 weeks to April 2 were £771.7mln, up 0.6% on a year ago. In the fourth quarter of the year, total sales rose 1.4% to £185.5mln against last time.
Trading profit was flat at £131mln but adjusted pre-tax profit increased £2.9mln to £86.1mln.
Premier said six of its largest eight brands - Bisto, Oxo, Loyd Grossman, Sharwood's, Mr Kipling and Cadbury cake - all lifted sales by an average of 3.4%, due to increased investment.
Sales of the other two brands, Ambrosia and Batchelors, fell 2.9% in the year. Premier said it would invest in the pair in 2016/17 to improve their performance.
New products are likely to include AmbrosiaDeluxe custard, Ambrosia Frozen Custard ice cream and Batchelors High Protein and High Veg pots.
Premier has faced controversy for refusing takeover offers from US rival McCormick & Co (NYSE:MKC), which resulted in the latter withdrawing its interest in the group.
Premier instead agreed a “co-operation” deal with Japanese noodle maker Nissin, which has taken a 17.27pc stake in the group at 63p per share.
Chief executive Gavin Darby forecast a 2%-4% sales rise in both 2016/17 and the medium term.
“The potential opportunities presented by our partnership with Nissin are also very exciting. The board is focused on shareholder value and we see a strong future”, he said.
Shares rose 0.4% to 39.41p.