The company’s full-year expectations were between £214m and £232m, but a statement said that it ‘no longer expected to meet that range’.
Premier Foods’ Hovis brand, the second biggest bread brand in the UK, saw volumes decrease by 13.5% in the three months to 30 September. Volumes across all divisions dropped 8% in the quarter.
The company is now in talks with its lenders, but has pledged to focus efforts on Hovis, Ambrosia, Batchelors, Bisto, Loyd Grossman, Mr Kipling, Oxo and Sharwood’s.
“Clearly it is a business with significant challenges,” said Michael Clarke, CEO. “We plan to dispose of businesses where we add little or no value, and have little strategic fit.”
Premier Foods’ debts will rise further this year, with analysts estimating a figure of about £900m. The company also has a pensions deficit of about £500m.
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