Northern Foods has predicted its first-half profit will be in line with its expectations and said plans to sell some of its businesses are on track.
The company also said today it will cut its central costs by at least £12 million per annum by 2007/08.
But chief executive Pat O'Driscoll said the trading environment had been very competitive. Analysts estimate the firm's first-half pretax profit will be around half of last year's £25.7 million.
The Leeds-based firm said full-year results would depend heavily on performance in the seasonally busier second half.
It added that warm summer weather had boosted sales in its chilled and frozen division but hit sales in its bakery business, as did a fire at one of its plants.
Northern is attempting to offload unprofitable and non-core parts of the company to halt a slide in profits. In May the company said it planned to sell around 40 per cent of its business.
Having agreed to sell its distribution business in July to a management-led buyout group for £51.2 million, the firm is still looking to sell the flour milling, cakes and speciality bread, and chilled pastry divisions.