UK snacks and confectionery maker Glisten warned today (19 January) that half-year profits would fall after lower volumes led to the “under-recovery” of overheads.
The company said “turbulent” market conditions had “dampened” sales and said a fall in volumes meant first-half operating profit would be lower than a year ago.
Turnover for the six months to 31 December rose 6% despite “erratic” demand, Glisten said.
In the run up to Christmas, trading in confectionery and savoury baked snacks sales were lower than expected, although Glisten said premium nut brand Dormen made “good progress”.
The company’s underlying margins are “robust”, the firm said, after it was able to drive through price increases. However, Glisten said the weakness of the pound may mean prices will have to rise again in the coming months.
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By GlobalDataThe company added that there is a “heightened focus” on promotions and lower prices among consumers.
“We expect this to continue to create weak and erratic demand but we have good new business momentum going into the second half of the financial year,” Glisten said.
The company will issue its first-half results on 23 March.
