Food firm Premier in profit warning

The UK’s largest food manufacturer today issued a profits warning as it revealed a slump in sales across well-known brands including Hovis.

Premier Foods, which also owns brands such as Indian foods label Sharwood’s and Batchelor’s soup, said sales volumes had fallen 8% in the three months to September 30. Hovis saw volumes drop 13.5% in the period.

The heavily indebted group, which also owns Ambrosia and Bisto, said it would sell off a number of businesses to focus on eight “power brands” in a bid to drive future growth.

Michael Clarke, Premier chief executive, who took the top post in August, said the trading performance was “significantly below expectations” and the company will not meet last year’s profit in the second half as previously expected.