Northern Foods, owners of Holland’s Pies, has witnessed a dip in sales over the past three months.
The Leeds-based group has seen its like-for-like sales fall by 1.6% in the 13 weeks to July 3.
Sales of its bakery products fell by 5.6% in the 13 weeks to July 3 as a result of a reduction in promotional activity.
Stefan Barden, chief executive of Northern Foods, said: "We expect to see continued challenging trading conditions.
"We are focused on a range of initiatives to enhance the competitive position of the Group and to drive growth, with increased investment in brands, talent and technology in the first half year.
"With a strong financial position, Northern Foods remains well positioned going forward."