UK manufacturer Premier Foods plc today (31 October) reported a 3% drop in third-quarter sales as “power brands” growth slowed and revenue from smaller brands, bread and own label fell.

Sales, excluding its milling business, recent disposals and a bread contract that ended in April, were down 3.2% to GBP283.2m in the three months to 30 September.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

The fall meant Premier’s sales for the first nine months of the year were down 1.6% at GBP904.4m. However, the company said: “Expectations for the full year remain unchanged.”

Shares in Premier were down almost 11% at the time of writing, suggesting investors were profit taking after the recent rally in the company’s shares.

Premier’s power brands, including Ambrosia and Bisto, saw sales inch up 0.4% in the third quarter. The hot summer in the UK affected a number of the categories in which Premier operates. For the nine months to the end of September, power brand sales were up 2.3% at GBP626m.

See Also:

During the third quarter, sales of what Premier’s calls “support brands”, including Homepride sauces, slid 9.8% to GBP45.6m. The company said this part of the portfolio would improve next year on the back of increased distribution, including in the discount channel.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Own-label sales were down 11.4% as Premier exited a number of contracts. Private label now accounts for 10% of Premier’s grocery sales.

Premier’s bread division saw sales dip 1.5%, again affected by the hot weather.

The company, meanwhile, announced a deal to distribute Ambrosia rice pudding pots in China.

Shares in Premier were down 10.97% at 160.25p at 10:24 GMT. Premier’s share price is up over 42% so far this year.