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Premier Foods on track with rise in sales Tuesday, 23rd October 2012
Photo credit: Premier Foods
Britain’s biggest food producer posted a 2 per cent rise in sales, attributed to its new focus on its eight ‘power’ brands as it looks to reduce its debt levels.
Premier Foods on Tuesday said it expected to cut costs by £20 million in 2013 after saving £40 million this year. The group is on track to raise £275 million from asset disposals by the end of the year, cutting its debts by 22 per cent.
The manufacturer, which owns a number of iconic British food brands such as Hovis, Bisto and Mr. Kipling, in August said it would split the company into two divisions of grocery and bread in a bid to become “more focused and profitable”.
Premier Foods added that it had lost a bread contract due for renewal in mid-2013 worth about £75 million in annual sales and was examining "a range of options" for its bread business, which accounts for nearly 40 per cent of revenues.