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.”