UK: Premier recovers costs through pricing, savings
Premier Foods said today (13 May) that trading for the 17 weeks to 26 April was in line with expectations as the UK-based food group had recouped rising input costs through price increases and cost savings.
The maker of Hovis bread revealed in its trading update that sales for the period increased by 6.3% year-on-year.
"We have made good progress in recovering commodity inflation through a combination of price increases and cost savings," chief executive Robert Schofield said.
Schofield added that the integration of the RHM and Campbell's businesses was continuing. The company expects to generate further savings through the closure of seven plants, which will be completed by the end of the year.
In a conference call to analysts and investors, Schofield revealed plans to rejuvenate the Hovis brand through an investment of at least GBP15m. (US$29.2m).
As well as Hovis, the company also makes Oxo stock cubes, Branston pickle and Mr Kipling cakes.
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