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Premier recovers input prices hike
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15/07/2008
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The bread to soup food group premier Foods has been able to recover the hike in commodity costs and is on track to match last years profits.
In a trading update for the half year ended 28 June, Premier today (15 July) reported group sales up 7%. It had achieved price rises to recover cost inflation, rejuvenated its Hovis brand, accelerated the integration of its RHM and Campbell's acquisitions and is on course to deliver its profit expectations for the full year.
Chief executive Robert Schofield said Premier Foods made good progress during the first half, despite the difficult economic and trading environment. “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.
"The integration of Campbell's and RHM is proceeding ahead of its original schedule. Our manufacturing rationalisation programme is progressing well with the closure of the Bristol and Droylsden factories in June. We have now closed five out of the nine factories scheduled to close through this programme with the remaining four to close over the second half of the year.
"Premier's broad portfolio of staple food products and leading brands, supplied through a wide range of customers, provides us with a resilient base as consumers' buying patterns evolve. We have good forward sight of inflationary pressures and have plans in place to mitigate them as they occur. Our expectations for the year remain unchanged with progress weighted to the second half as the benefits of synergies from the manufacturing rationalisation programme, price increases achieved to date and the rejuvenation of Hovis flow through."
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Author
Ken Hurst
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