Premier Foods, the maker of Mr. Kipling and Cadbury cakes, plans to spend most of its earnings from the first half of the year on its supply chain, with the UK battling a shortage of food items from cereal to crisps as it emerges from the pandemic.
The company, which reported a pre-tax profit of £30.7 million for the six months ending 2 October, expects full-year capital expenditure of about £25 million as it accelerates investment across the supply chain.
In the first half of the year, Premier Foods spent £6.3 million.
The British company saw a working capital outflow of £23.2 million in the first half, compared to an inflow of £4.5 million a year earlier.
"This outflow in the half was largely due to higher stock levels compared to six months ago as the group builds stock for the Christmas season," Premier Foods said.
News by Reuters edited by Donna Ahern, Checkout. For more A Brands stories click here. Click subscribe to sign up for the Checkout print edition.