Business

Premier Foods, maker of Hovis bread, sees losses narrow

Premier products
Image caption Premier Foods has been cutting costs

The maker of Hovis bread and Bisto, Premier Foods, has reported that losses narrowed to £23.5m in the six months to the end of June.

In the same period last year, it recorded a loss of £45.8m.

Sales for its bread division rose 8.2% to £356m, but total grocery sales declined by 1%.

Costs for reorganising the business totalled £12.4m, which included the closure of three bakeries and two distribution sites.

In a statement accompanying the interim results, chief executive Gavin Darby said: "We have already completed the actions to deliver the promised £20m of overhead cost savings for 2013 and continue to keep a tight control over costs.

"The restructuring of our bread and milling business is ahead of plan and we are taking the decisions necessary to create a more sustainable platform for this business."

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