Premier Foods plc today (23 October) warned its annual trading profits would be “towards the lower end of market expectations” after a challenging third quarter when the UK group’s branded sales fell by over 4%.
The announcement, which came alongside the publication of its third-quarter sales, hit the company’s shares in London this morning.
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The Bisto and Sharwood’s owner said “unprecedented structural changes in the industry” had been “increasingly demanding” during the quarter.
Sales of Premier’s brands dropped 4.1% in the three months to 30 September. Premier’s so-called “power brands” – which include Bisto and Sharwood’s, as well as the likes of Ambrosia and Mr Kipling – fell 5.1%. In the first half of 2014, sales of Premier’s power brands declined 4.1%.
Premier’s total sales, which include those made through its own-label business, decreased 4.7% to GBP177m (US$283.2m).
CEO Gavin Darby said Premier’s recent move to set up distinct units within its business would help it respond to the trading conditions facing the company.
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By GlobalData“We continue to invest in our brands and strengthen our customer partnerships, while retaining a tight focus on managing costs, the delivery of trading profit and organic deleveraging. I believe this balanced approach is central to creating value,” Darby said.
Shares in Premier were down 10.22% at 30.75p at 10:19 BST today.
Click here for just-food’s interview with Darby, held after Premier’s half-year numbers in July, in which he discussed how the UK group was looking to navigate the tough trading conditions in the country.
