Premier Foods logistics issues take a slice out of third quarter revenues
Mr Kipling maker Premier Foods saw sales fall in the third quarter after logistics problems ate into revenues.
The food manufacturer, which also makes Bisto and Oxo cubes, said sales fell 2.2 per cent to £256m in the 13 weeks to 29 December.
Read more: Tesco and M&S reveal stockpiling amid concerns of a 'no deal' Brexit
The firm's gravy train was slowed by poor sales of its non-branded Sweet Treats, which dropped 20.7 per cent on the year before due to problems with its logistics programme.
The food manufacturer said its market share increased as its three largest brands – Mr Kipling, Bisto and Batchelors – delivered strong sales.
Premier Foods used the trading update to name chief financial officer Alastair Murray as acting chief executive.
Last year the company said boss Gavin Darby will step down at the end of January, having successfully resisted an ousting attempt by activist investor Oasis.
Premier Foods said it is in talks with potential buyers for its Ambrosia custard brand, which the firm is trying to offload in a bid to reduce debt.
Chief executive Gavin Darby said: “We faced into two sets of challenges in the quarter – lower international sales and our logistics programme, which as expected, affected cake sales volumes early in the quarter.
“As we look to the fourth quarter, we expect to see a good performance from branded Sweet Treats and we have a good innovation plan lined up.”
Read more: Christmas sales grow at St Pancras International despite retail gloom
Shares in Premier Foods dipped in early trading, before bouncing back to tick up just over one per cent.
Premier Foods said its full-year profit and earnings per share expectations remain unchanged.