Premier Foods chief defends strategy ahead of crucial AGM vote | City A.M.

Premier Foods boss Gavin Darby has defended the group’s strategy ahead of a crucial vote at its AGM today.

Activist investors Oasis and Paulson oppose Darby’s re-election and have both built up bigger stakes in the company over the last two weeks. Oasis has described the chief exec’s tenure as ‘five years of failure’.

But this morning Premier provided an update in which Darby said sales growth showed “that our strategy of product innovation and working closely with our strategic partnerships is delivering results”.

In the 13 weeks to the end of June, group sales were up 1.7 per cent. Across the first half of the calendar year, sales grew 4.5 per cent.

Growth in the first quarter of the financial year was boosted by a fresh look for the Mr Kipling brand. Meanwhile Batchelors remained the star of the grocery division, as sales of Super Noodles pots and pasta pots jumped 50 per cent.

Premier partnership with its biggest shareholder, Japanese company Nissin, also helped boost sales as Nissin brands Soba Noodles and Cup Noodle were up 80 per cent.

Oasis has urged Nissin to abstain from the vote to re-elect Darby at today’s meeting, but Premier Foods said last week that the company was planning to back the CEO.

Meanwhile Oasis has built its in Premier, while US hedge fund Paulson tripled its holdings.

The AGM is scheduled to begin at 11am in London this morning.

Read more: Premier Foods vote looms amid shareholder split on future of top boss