Premier cooks up growth
PREMIER Foods claimed yesterday it was well positioned to weather the impact of higher inflation as price hikes and factory closures kept it on course to meet profit forecasts.
The Hovis bread, Mr Kipling cakes and Batchelor’s soup maker said it had offset mid-to-high, single-digit percentage growth in inflation in the first half, although the cost of commodities such as milk and wheat had soared.
Trading profits are in line with the same period last year as sales increased 7 per cent.
Despite debts of £1.82billion, Premier chief executive Robert Schofield said he expected the company to continue to operate within its banking covenants.
“The driver of the sales growth has been price rises to recover significant input cost inflation,” Schofield said.
“We are pleased by the response of consumers to the new recipe and packaging for the Hovis white loaf and look forward to rejuvenating the whole of the Hovis range.
“Premier’s broad portfolio of staple food products and leading brands provides us with a resilient base,” he added.