StockMarketWire.com - Premier Foods said its sales rose 2.6% in its fiscal third quarter, underpinned by healthy demand for its Mr. Kipling cakes.

The growth in sales in the three months through December helped financial year-to-date sales rise 2.5%.

Mr.Kipling sales jumped 10% in the third quarter, supported by TV advertising and new product ranges.

Chief executive Alex Whitehouse said the company had doubled its UK marketing investment during the period, with more to come in the fourth quarter.

Premier Foods, he added, was poised to launch new products, including Cadbury Creme Egg choc cakes and Mr. Kipling mini pies and tarts.

'We are making good progress towards our cost savings goals and are on track to deliver £5m savings over the next two years to further increase investment into the branded growth model,' Whitehouse said.

He added that the sales performance supported the company's profit expectations for the full year.

He also said that the company, which is grappling with a heavy debt load, was on track to meet its net debt-to-EBITDA target of 3.0 times by March 2020.

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