In Q1, branded sales across the Group saw a 1.4% decline to £150.1m, whilst non-branded sales saw a 3.1% slide to £16.2m, equaling a 1.6% decrease overall.
In its grocery division, branded sales were down 2% to £110.1m, whilst non-branded sales were down 9.8% to £10.2m. However, in its sweet treats division, branded sales saw a slight increase of 0.1% to £40m, whilst non-branded sales were up 11.1% to £6m.
Gavin Darby, chief executive officer, said: “We are encouraged by the continued good volume and value response of our brands in those areas where we have focused on our investment, although branded sales in the quarter were impacted by the earlier timing of Easter.
“While the business environment remains challenging, our expectations for the year, including a significant reduction in net debt, remain unchanged.”
The company recently reduced the size of its Debtors securitsation facility from £120m to £80m, reflecting the smaller debtor’s book following the completion of the Hovis joint venture transaction in 2014.
Premier Foods has pledged to continue its commitment to brand investment, with consumer marketing expenditure planned to increase materially in 2015/16.