Pioneer Foods boosted by higher prices
Company beats muted consumer demand and spend which exerted pressure on its operating margins as well as uncertainty over Brexit
Higher prices of bread, wheat flour, rice and export fruit boosted branded foods and beverages producer Pioneer Foods’ performance in the four months ended January 31. This is despite the muted consumer demand and spend which exerted pressure on the company’s operating margins as well as uncertainty about Brexit, which could affect its UK business. In the four months ended-January, the owner of Bokomo, Sasko, Weet-Bix and White Star brands increased turnover by 7.8%, the company said in a trading update on Friday. “The growth is primarily driven by price inflation in bread, wheat flour, rice and export fruit as well as sound volume growth in local beverages, bread, rice and breakfast cereals in the UK,” Pioneer Foods said.
The company said its essential foods division, which houses maize and wheat products, saw “excellent” volume growth from bread as well as bread and wheat flour inflation. Volumes growth in the maize category, however, slowed. This is contrary to the strong p...