The Australasian food company Goodman Fielder says rising commodity prices and an unfavourable exchange rate mean it will earn less than originally expected this year.
The company, whose brands in New Zealand include Meadowlea, Vogels and Edmonds, expects its full-year earnings to be between $140 million and $150 million.
That's down from the $161 million it made last year.
Goodman Fielder says it raised the prices of its products to cover higher costs and took a firm position with its major Australian trading partners.
But retailers were resistant to higher prices, and reduced volumes - which lead to a soft third quarter.
Chairperson Max Ould says the poor performance of the third quarter will not be recovered by the end of the financial year - despite steady performances from the company's other operations.
It admits it underestimated the effect of the Canterbury earthquakes and Australian floods, which resulted in the loss of some business and higher operating costs.
On the brighter side, the company believes its final quarter will be stronger, as volumes return to normal.
Shares in Goodman Fielder have fallen 7c to $1.50.