Premier Foods profits jump 50 per cent

Suzie Neuwirth

BRITISH food producer Premier Foods, which owns brands such as Hovis and Bisto, today reaped the rewards of its cost cutting strategy to report a 50 per cent increase in first-half trading profit.

Profits rose to £47.4m over the period and full-year profit is expected to be around the top end of market expectations, the London-listed firm said.

Cash flow guidance for the full year has been raised to £50-70m from the previous range of £40-60m.

Cost savings of £20m have been delivered, with plans for a further £10m in the second half.

“A 50 per cent increase in trading profit is a very encouraging result given the highly competitive environment,” said chief executive Gavin Darby.

“This shows that our turnaround strategy is delivering at the bottom line.”