(Reuters) – 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 pounds for the six months ending Oct. 2, expects full-year capital expenditure of about 25 million pounds as it accelerates investment across the supply chain. In the first half of the year, Premier Foods spent 6.3 million pounds.
The British company saw a working capital outflow of 23.2 million pounds in the first half, compared to an inflow of 4.5 million pounds 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.
(Reporting by Muvija M & Chris Peters in Bengaluru; Editing by Shailesh Kuber)
