Mr Kipling cakes maker Premier Foods has warned profits will be 10% lower than expected this financial year after weak sales in the final three months of 2016.

The company, which employs 300 people at its Batchelors Cup a Soup factory in Ashford, said sales of its branded products were down 3.8%, giving it overall revenues of £251.4 million for the 13 weeks to the end of December.

Chief executive Gavin Darby announced a range of efficiency measures expected to save the company £10 million in its next financial year, particularly focused on its warehousing and distribution operations.

He said: “This programme will support the company’s twin goals of delivering trading profit and free cash flow while investing in innovation and consumer marketing.”

In an update to investors this morning, the company said its grocery division had been affected by changing promotional strategies from retailers, notably a reduction in multi-buy deals.

It said the changes to offers in stores is expected to contine to impact sales growth in the first half of this year.

Despite the difficulties, the company reported a strong December, with revenues up 4.5%. It sold more than 216 million mince pies last year, up 17%.

The firm will also begin distributing its first Nissin branded products in the next few weeks.