Premier Foods sees unexpected heatwave dent demand

The group - which also owns Bisto, Sharwood’s and Mr Kipling cakes - revealed that sales in its grocery arm tumbled by 9.5 per cent in its second quarter to October 13.

Premier said gravy and stocks sales were among the worst hit, dropping by 13 per cent, while dessert sales were 9 per cent lower in the quarter.

The group said half-year trading profit was now expected to be slightly lower than a year earlier after the September blow left overall first-half sales down 1.8 per cent.

Full-year sales are now expected to grow by a more muted 1 per cent to 2 per cent, but Premier said a tight rein on costs was set to keep annual profits in line with expectations.

Gavin Darby, chief executive of Premier Foods, said: “We are disappointed that our grocery business reported materially lower sales in the quarter due to warmer weather; particularly in September.”

Premier, which fought off takeover attempts earlier this year by Schwartz spice US owner McCormick & Company, said that, while September was the second equal warmest on record, every week in its second quarter was warmer than a year earlier.

But strong demand for new Cadbury cake Amaze Bites and its Cake On The Go range helped drive a 6.4 per cent rise in sales of sweet treats in the second quarter, while Premier’s international business also performed well, with a 13 per cent sales lift.

Premier launched Cadbury cake ranges in the United Arab Emirates for the first time towards the end of the quarter.

Martin Deboo, analyst at Jefferies, said: “An unseasonably cold winter could still put things to rights. But September’s heatwave was one that Premier Foods and its shareholders could have done without.”