(Reuters) - Premier Foods Plc (L:PFD), the British maker of brands such as Mr Kipling cakes and Bisto gravy, cut its full-year profit forecast by 10 percent on Wednesday after weaker-than-expected third-quarter sales, sending its shares sharply lower.
Group sales in the quarter to Dec. 31 fell 1 percent to 251.4 million pounds ($310.43 million) while volumes increased 3.4 percent, the company said.
Premier Foods, which had already cut its full-year sales expectations in October, now expects profit for the year to be about 10 percent below previous expectations.
The company faces cost inflation in commodities such as sugar and chocolate as well as higher imported input costs due to a weaker pound, it said.
Sterling
Premier said last week that it was talking to large retailers about price increases.
On Wednesday it announced a cost-saving and efficiency programme aimed at delivering annual savings of 10 million pounds from 2017/18.
Shares in Premier opened down more than 15 percent at just under 41 pence per share.
The company spurned a 65 pence per share takeover approach from U.S. food maker McCormick (N:MKC) last April.