(Reuters) – Premier Foods reported a rise in half-yearly adjusted profit on Wednesday on strong demand for its cakes and grocery products, while flagging further price pressures amid surging inflation.
“We continue to see further input cost inflation, which we expect to recover through a combination of cost savings and our annual price increase in the quarter four this year,” Chief Executive Officer Alex Whitehouse said.
Britain’s grocery sector has come under pressure this year from a deepening costs-of-living crisis and supply disruptions caused by the war in Ukraine. Surging prices have caused the biggest squeeze on UK household income since at least the 1950s.
Premier Foods said adjusted profit before tax rose nearly 12% to 47 million pounds ($55.83 million) in the six months ended Oct. 1.
The maker of Mr Kipling cakes and OXO cubes reported a 6.2% rise in half-year revenue and said it was on track to deliver full-year expectations.
($1 = 0.8419 pounds)
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Subhranshu Sahu)