BRITAIN’S BIGGEST food manufacturer Premier Foods posted a 29 per cent slump in first-half profit yesterday, hit by rampant commodity prices and what it said was an unprecedented fall in demand.
The maker of Branston pickle, Bisto gravy and Hovis bread was also hit by 14 per cent inflation in its raw materials, an extra cost of £150 million over a full-year period.
Premier Foods, which also makes Mr Kipling cakes and Hartley’s jam, raised prices but a time lag before they came into effect cost the firm £15 million.
It lost a further £10 million when a major customer – said by analysts and media to be the supermarket giant Tesco – refused temporarily to stock the repriced products.
Premier’s Brookes Avana division also suffered extended losses after Marks Spencer cut a pie contract.
Premier Foods made a trading profit for its ongoing businesses of £67 million in the six months to June 25th. Sales from ongoing businesses fell 0.9 per cent to £974 million. – (Reuters)
