Premier Foods results hit by costs

Premier Foods has said its year results would be at the lower end of expectations after cost increases and warm weather offset…

Premier Foods has said its year results would be at the lower end of expectations after cost increases and warm weather offset a 20 per cent rise in sales due to new acquisitions.

"We have continued to see cost pressures over the second half of the year, which we do not expect to be fully offset until the early part of 2007," the company said.

"These pressures, coupled with the effect on volumes of the exceptional period of warm weather which has continued into December, means that we anticipate that trading for the year will be at the lower end of our expectations," it added.