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Premier Foods, the creator of Mr. Kipling and Cadbury sweets, aims to spend the majority of its earnings in the first half of the year on its supply chain, as the UK struggles to recover from the pandemic, resulting in a shortage of food items ranging from cereal to crisps.
As it accelerates investment across the supply chain, the company, which recorded a pre-tax profit of 30.7 million pounds for the six months ended Oct. 2, estimates full-year capital expenditure of around 25 million pounds.
Premier Foods spent £6.3 million in the first six months of the year. In the first half, the British company experienced a working capital outflow of 23.2 million pounds, compared to an inflow of 4.5 million pounds the previous year.
“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.
Story by : Norvisi Mawunyegah