Branston pickle maker Premier Foods has said it had achieved the "key" price increases needed to cover rising production costs.

Premier, which also makes Hovis bread and Mr Kipling cakes, described trading conditions as challenging but said it met its profit target for the half year.

The company is Britain's biggest food manufacturer and has factories at Bury St Edmunds, Methwold, Wisbech and Long Sutton.

But Premier has seen its share price fall by 70pc in the last year amid concerns over rising food prices and the scale of the company's 1.6bn debt after the acquisition of Campbell's in 2006 and Hovis maker RHM in 2007.

The Campbell's deal brought an end to production at the company's factory in King's Lynn and in the last two months Premier has closed three further factories in Ireland, Bristol, and Droylsden, near Manchester.

Four other factory closures are planned by the end of this year in Herefordshire, Cheshire, Reading and Wythenshawe in Manchester.

Yesterday, Premier said profits fell 29pc to £3.6m, but added that growth was weighted towards the second half as a result of the price rises, the factory closure programme and efforts to rejuvenate its Hovis brand.

Premier invested £15m in the Hovis brand in 2008, including in recipe improvements to enhance the texture and flavour of the bread.

It launched a soft white loaf earlier this year and is planning a significant promotional campaign for the rest of the range next month. The drive will include new packaging and television advertising, which Premier hopes will return Hovis to market-share growth.

The need for a turnaround was revealed in the results, with bakery profits down 23pc to £14.6m, primarily as a result of lower volumes.

Significant price rises meant turnover still increased 16.1pc to £462.7m.

In Premier's grocery division, which includes brands such as Branston's, Hartley's and Mr Kipling, turnover increased 2.3pc to £630.5m. This reflected price increases totalling 6.2pc, offset by a 3.3pc decline in volumes.

As well as recovering recent cost inflation, Premier chief executive Robert Schofield said the company had good visibility on future cost rises.

He added: "We have achieved the key price increases that were needed to recover input cost inflation seen to date and have continued to invest behind our portfolio of brands and staple food products to ensure they prosper through the current difficult economic conditions."