23rd Oct 2014 06:37
LONDON (Alliance News) - Premier Foods Thursday said it expects full-year earnings to be at the low end of market expectations, citing "challenging" market conditions as it reported a 4.7% drop in third-quarter sales.
The company, which owns food brands such as Mr Kipling and Oxo, said it will introduce a new organisational structure to combat changes in the industry and in a bid to improve market focus.
"Market conditions in the third quarter have proved to be increasingly demanding with unprecedented structural changes across the industry gathering pace," said Chief Executive Gavin Darby. "In response to this changing environment, we have put in place a new business unit structure with new leaders to reinforce our category based strategy and improve our agility, focus and accountability."
Sales in the three months to September 30 fell to GBP177 million, from GBP185.7 million a year earlier. Power brands sales fell 5.1% to GBP119.5 million and support brands fell 0.9% to GBP40.4 million. Non-branded goods fell 10.3% to GBP17.1 million.
By Ian Edmondson;
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