Premier Foods blames Aldi and Lidl after profits warning that wiped 15 per cent off company's value
Premier Foods blamed Aldi and Lidl after a profits warning that wiped 15 per cent off the company’s value.
The food group behind Mr Kipling warned of exceedingly poor trading as most ranges, including Oxo cubes and Bisto gravy, are only stocked in large supermarkets.
Premier has a small range of products in cut-price grocers.
Hit hard: The food group behind Mr Kipling warned of exceedingly poor trading as most ranges, including Oxo cubes and Bisto gravy, are only stocked in large supermarkets
Britain’s ‘big four’ grocers have been hammered by the ascent of the German discounters, which now account for around 8 per cent of the UK market. In an attempt to respond, the group is selling second tier brands such as Bird’s Custard and Paxo stuffing in stores.
Premier warned that third quarter sales fell by 4.7 per cent, which would push annual profits ‘towards the lower end of expectations’.
Shares fell nearly 15 per cent to finish 5p lower at 29.25p, wiping £33.5m off the value of the company.
Chief executive Gavin Darby said: ‘There has been a very big change in consumer patterns, and shoppers are moving away from the big stores.’
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