Soaring inflation and raw material costs have dented the profit margins of Australian food companies, which are battling a “lag” in passing on the full extent of those costs to shoppers, who are now facing their own cost-of-living pressures.

It has resulted in the share prices of a string of groups including Vegemite owner Bega Cheese, fruit and vegetable grower Costa Group and gourmet food group Maggie Beer Holdings being beaten down by 25 per cent or more in the past year.