LONDON Oct 12 Premier Foods reported
weaker-than-expected second-quarter sales and lowered its
full-year outlook on Wednesday, saying a warm start to autumn
hurt sales of gravies and some desserts.
Shares of Premier, which had gained around 40 percent since
the end of June, were down 10 percent after the results'
The maker of Bisto gravy and Ambrosia creamy rice and
custards said group sales fell 5.4 percent to 172.5 million
pounds ($215 mln) in the second quarter, ended Oct. 1, leading
to a 1.8 percent decline for the first half.
Sales of its gravies and stocks fell 13 percent and sales of
desserts dropped 9 percent.
Premier said its profit expectations for the year were
unchanged, due to careful management of costs, but that its
sales would now rise by only 1 to 2 percent, versus a prior
forecast for an increase of 2 to 4 percent.
It kept the 2 to 4 percent forecast for the medium term.
($1 = 0.8042 pounds)
(Reporting by Martinne Geller in London; Editing by Susan