JOHANNESBURG, Nov 12 (Reuters) - South African food

producer Premier Group posted on Tuesday a rise of

32.4% in half-year profit at the upper end of its forecast

range, boosted by cost-saving initiatives in a challenging

operating environment.

The 200-year-old company which listed last year said its

headline earnings per share (HEPS)- a profit measure - grew to

438 cents for the six months ended Sept.30 from 331 cents a year

ago.

The maker of Blue Ribbon bread and Snowflake flour has

invested in its manufacturing capabilities by building

high-volume bakeries and other modern equipment that have

improved quality and cut production costs.

Group revenue grew marginally by 3.7%, to 9.7 billion rand

($539.38 million), despite a challenging environment marred by

"high interest rates, soft commodity volatility and a depressed

consumer environment," the company said in a statement.

Operating profit increased by 17.3% to 945 million rand,

benefiting from the suspension of load-shedding, which further

improved operations in Premier's core categories.

The group, which vies for market share with rivals such as

Tiger Brands, Pioneer Food and RCL Foods,

recently bought a 30% stake from rice importer Goldkeys

International, to gain exposure to the market in the staple.

($1=17.9836 rand)