Carrs Milling Industries said in an AGM statement this week that a massive increase in wheat prices, combined with high energy costs, will make it a tough year for its food division.
Company chairman, Lord Richard Inglewood said: "There remains an inevitable lag in successfully passing on cost increases to customers. With little change likely in the foreseeable future, we are continuing to look for both cost savings and volume increases to protect the bottom line."
In the 52 weeks to 2 September 2006, Carr’s saw an eighth successive annual increase in both adjusted pre-tax profit and adjusted basic earnings per share across its business. Revenue increased by 26.3% to £242.6m, partially due to its new Meneba flour business, acquired in November 2004.