Premier Foods yesterday reported a 7% increase in sales
for the first half of the year, largely due to price
rises covering the cost of inflation.
Grcoery sales rose by 2% compared to the equivalent
period last year.
However, shares in the group, the UK?s largest food
manufacturer, dropped by 3% following news that its debt
had spiralled to ?1.8bn ? up by around ?200m since the
beginning of 2008.
The group is valued at around ?620m.
Premier Foods made good strategic and operational
progress during the first half of the year, despite the
difficult economic and trading environment that all
consumer businesses are facing,? said chief executive
Robert Schofield. ?Against this background we have
recovered the commodity cost inflation we have seen to
date and we expect pro forma trading profit for the
first half of the year to be in line with the same
period last year.?
He added: "We still see inflation coming down the track.
We have covered all that we have experienced to date
[with price increases] but we do see more coming.?
Premier controls a host of major UK brands including
Hovis and Mr Kipling.