Food manufacturer Premier Foods has announced a 12.2 per cent rise in pre-tax profit for 2006, despite the end of its Cadbury chocolate beverages licence.
The St Albans-based FTSE 250-listed company revealed profits of £58.1 million, boosted by the acquisition of soup company Campbell's for £460 million in August.
Commenting on the recent acquisition Robert Schofield, chief executive of Premier, said: "The Campbell's business acquired in August fits Premier like a glove. It has significantly enhanced our brand portfolio, adding the iconic British brands of Oxo, Batchelors and Homepride while offering us substantial operational synergies."
Purchases this year are due to include Premier's takeover bid of rival manufacturers RHM for £1.2 billion, making Premier the UK's largest food company.
Speaking about the takeover, due to complete on March 16th, Mr Schofield said: "In December, we announced our agreed offer for RHM, which has received resounding support from both Premier's and RHM's shareholders… and brings a fantastic stable of brands into the portfolio including among others Hovis, Mr Kipling, Bisto and Sharwoods."
Highlighting some problems such the end of the Cadbury chocolate beverages licence, "significant raw material and energy price inflation" and the warm summer and autumn in the UK, Mr Schofield added that the new acquisitions and the growth of the existing businesses "more than compensated for" such troubles.
Shares in Premier Foods rose by 1.31 per cent during morning trading, having initially surged to over two per cent of their opening value.
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