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.

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.

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.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

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.

Just Food Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Food Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now