Premier Foods Battles Inflation, Increased Raw Material Costs
August 05 2011 - 3:07AM
Dow Jones News
Premier Foods PLC (PFD.LN) Friday reported a narrowed first-half
pretax loss as it battled against weaker consumer spending and
higher raw material costs.
The company, which serves all of the U.K.'s largest
supermarkets, said it has successfully passed on the majority of
price increases to its customers and has been working toward
reducing costs.
For the six months to June 30, the company posted a statutory
pretax loss of GBP3 million, compared with GBP58 million a year
earlier. However the company's trading profit, which does not
include interest, taxes or one-off costs, fell 29% to GBP67
million, with revenue also falling 2.2% to GBP1.1 billion.
Premier Foods is behind household brands including Oxo stock
cubes, Hovis bread, Mr Kipling cakes and SAXA Salt. The company was
embroiled in a high-profile disagreement with Tesco PLC (TSCO.LN)
last year over price increases associated with its Hovis range. The
company said the dispute has now been resolved.
In June, Premier said profit would be dented by a 14% jump in
commodity prices--equivalent to a GBP150 million increase in
costs.
-By Mario Christodoulou, Dow Jones Newswires; 44-20-7842-9479;
Mario.christodoulou@dowjones.com
Order free Annual Report for Tesco PLC
Visit http://djnweurope.ar.wilink.com/?ticker=GB0008847096 or
call +44 (0)208 391 6028
Order free Annual Report for Premier Foods PLC
Visit http://djnweurope.ar.wilink.com/?ticker=GB00B01QLV45 or
call +44 (0)208 391 6028
Premier Foods (LSE:PFD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Premier Foods (LSE:PFD)
Historical Stock Chart
From Aug 2023 to Aug 2024