Premier Foods Q3 sales in a pickle

28th Oct 2010 07:38

Hovis bread owner Premier Foods said total group sales fell 4.2% in the three months to 30 September after a reduction in non-branded sales."We still aim to make progress in the full year but the slowdown in Q3 means this is likely to be more modest and is, as always, dependent on Christmas trading," said Branston Pickle and Bisto gravy owner. Branded sales during the third quarter were up 4.6%, while value sales were down 0.5%. Sales of its 'drive brands' which include Hovis bread and Mr Kiplings cakes, surged 7.9%.Chief executive Robert Schofield commented, "We are making good progress on our stated strategic objectives, despite an increasingly challenging trading environment."Meanwhile Premier said, following talks with retailers, it has completed its repricing, in both Grocery and Hovis to recover the sharp rise in wheat prices. "Our Grocery, Hovis and Meat-free businesses are trading well, taking market share and we expect each to match or increase Trading profit for the year. Profit in our non-branded chilled business, however, will be lower given competitive pressures and higher input costs," it explained.Earlier this month Premier Foods received a bid proposal for its meat-free business, which includes the Quorn brand.