Premier Foods takes FX hit

5th Aug 2009 07:42

Hovis to Branston Pickle maker Premier Foods has reported a first half loss, but remains on course to match full year forecasts.The group posted a loss of £30m before tax from continuing operations for the six months to 27 June 2009 compared with a profit of £2m in 2008. Turnover rose 3.5% to £1.25bn.Premier said the mark to market impact of foreign exchange hedging as sterling strengthened against the dollar and euro, plus a movement in the pension financing adjustment, more than offset an increase in trading profit.operating profit from continuing business before one-off items and goodwill rose 5.6% to £123.6m, in line with forecasts. Chief executive Robert Schofield was "pleased" with progress, especially a 17% jump in sales at the Hovis bread business.The grocery division grew market share by 1.6 percentage points and Hovis gained 3.6 percentage points to hit its highest level in over two years."Cost inflation remains an issue which we will continue to offset through pricing and efficiency savings," Schofield said."We continue to focus on cash generation and debt reduction and we are on course to deliver our full year profit expectations."The firm raised £379m in March from a cash call at 26p a share.