Shares in Goodfella's pizza maker Northern Foods have dropped over 9% after warning that higher energy costs and lower prices will eat into profits.
Northern produces Goodfella's Pizzas and Dalepak frozen foods
The company said third quarter sales rose by 3%, but that profits would be hit by higher fuel bills and price cuts in its Fox biscuits division.
Profit before tax for the current year is expected to fall below the prior year, the company said.
Last year the Yorkshire-based firm made a pre-tax profit of £62.2m ($110m).
"Given the ongoing promotional activity in biscuits and continuing investment in the chilled turnaround programme, second-half continuing operating margin will be below the prior year," Northern Foods said in a statement.
Shares in Northern Foods fell 15 pence, or 9.15%, at 149p on Friday morning.