skip to main content

Premier Foods profit rises on sales boost from key brands

Britain's Premier Foods said first-half profit rose 3% on strong sales of its key brands.

It also reaffirmed its full-year expectations while remaining cautious amid the current economic environment.

The company owns a string of iconic food brands like Hovis, Batchelors, Mr Kipling and Sharwood's.

It said trading profit from ongoing business rose to £72.2m sterling for the months from January to June from £70.1m a year earlier.

Sales from ongoing businesses were down 2.3% at £852.3m. Power Brands sales increased 2% to £418.9m, due to strong performances by Loyd Grossman and Mr Kipling.

The company is weighed down by hefty debt built up during a spending spree before the 2007 credit crunch.

Premier Foods, which had a net debt of £1.3 billion by June 30, is disposing its non-core products to focus on eight key brands including Hovis bread and Sharwood's curry range in a bid to turn around its business.