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Premier Foods sees shares fall

18th Jan 17 1:59 pm

Is Brexit to blame?

Premier Foods the owners of brands such as Mr Kipling, Batchelors and Bisto has said shares have fallen drastically, it expects profits to tumble this year.

Due to rising costs the firm said its profits would be ten per cent lower.

The pound’s fall has pushed up the price in ingredients such as sugar, cocoa and palm oil.

The company also stated that customers were being reeled in by cheaper non-branded products.

In early Wednesday trading, shares were down 15 per cent.

Chief Executive, Gavin Darby said: “Recovery of significant input cost inflation in certain areas is taking longer than originally foreseen,”

The group is set to start a three-year cost cutting plan which will aim to make savings of £10m by next year.

Despite the bad news, the company have said other big brands such as Bisto, Oxo, Loyd Grossman, Ambrosia and Batchelors are doing well.

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