Mixed third quarter at Premier Foods

31st Oct 2013 08:35

- Third quarter sales slip- Slower growth at Grocery Power Brands- Reiterates full year guidanceBranded food producer and ingredients firm Premier Foods said total underlying sales slipped in the three months ending September 31st as it sticks to its full year expectations.The producer of brands such as Hovis bread, Bisto gravy and Ambrosia custard and rice pudding, said Grocery Power Brands increased 2% in the third quarter, down from 4% growth in the first half of the year.Total underlying sales fell 3.2% as the group pushes ahead with cost savings initiatives as outlined at the half year.Sales in its Bread business were 1.5% behind the same period last year reflecting a slower start to the quarter as a result of the hotter July weather, it explained.Chief Executive Officer Gavin Darby said: "Overall, I'm encouraged by the progress we are making in what continues to be a highly competitive market. The intensity of promotional activity in our markets remains high while our categories were significantly impacted by the hotter weather in July and early August." "We have grown our Grocery Power Brands for a further quarter, completed a major restructuring of our Bread supply chain and our plans to reduce complexity across the business remain on track."Net debt expectations for 2013 remain unchanged, with recurring free cash flow generation in the year expected to be in the range of £50-70m."Against this backdrop, and as the company enters the important Christmas trading period, expectations for the full year remain unchanged."CJ