LONDON, Oct 12 (Reuters) - 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’ announcement.
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 Fenton)