Food manufacturer Premier Foods has cut its forecasts for annual sales of its key brands due to the subdued FMCG market.
The company had previously issued forecasts of sales growth of 2 to 3% of its power brands, including Ambrosia, Batchelors and Mr Kipling.
Premier has now abandoned the forecast following a weak outlook for second quarter sales.
The manufacturer’s total sales fell 6.2% for it first quarter to £186.3 million.
The latest predictions will account for the second consecutive sales decline in the power brands after a 3.5% sales drop during the first quarter.
Premier said the full-year profits forecast remained unchanged with a cost-cutting programme helping to balance sales.
The company announced a £1.13 billion refinancing package in March.
In a statement, the company said, “While Power Brands sales for the second quarter are anticipated to be negative and below the company's expectations due to subdued grocery markets, profit expectations for the twelve months to 31 December 2014 remain unchanged."
“The market expects pre-tax profits of around £90m for the full year, a sharp recovery from the £4.4m made a year earlier, as cost cuts and restructuring feed into the bottom line.”
Premier Foods will release its half-year figures on July 22.
© 2014 - European Supermarket Magazine
