Mr Kipling, the maker of cakes and bisto gravy, said they would have to raise prices as wheat, milk and energy went up.
Alex Whitehouse, chief executive of Premier Foods, said the company was facing inflationary pressures of more than 10 per cent in its business and would try to mitigate it by cutting costs elsewhere, incurring some additional costs. To consumers.
The confession comes just days after Bank of England Governor Andrew Bailey warned of “apocalyptic” food price hikes.
“Food inflation is significant and going to be difficult for some families,” said White House, 52. He added that “consumers are increasingly looking for better value-for-money solutions” and hoped he would benefit because people save money by eating at home instead of going to restaurants.
The comments came as Premier Foods City’s forecast surpassed the forecast, with pre-tax profits rising 16.4 percent year-on-year to £ 102.6 million as of April 2. It said it had gained market share during the period, with sales rising 6.3 percent to £ 900.5 million.
Last year, the group reintroduced dividend payments for the first time in 13 years, and the company said that after another strong year it would increase its shareholder reward from the fifth to 1.2pa per share.
Shares of Premier Foods rose more than 10 percent or 10¾p to 117½p
Premier Foods has a recent history of a checker after a rejected takeover procedure, an inflated debt pile and a large pension deficit crippled business investment and hampered sales growth.
However, the company’s recently improved trading performance has led to a restructuring of its pension schemes, which has resulted in a £ 125 million reduction in payments and a significant reduction in debt, including leverage, now 1.7 times earnings. “In the last two years, we’ve completely changed our financial position,” the White House said.