Premier Foods, Britain's biggest food producer, has posted rising quarterly sales and said its restructuring programme was on track to help it meet its full-year expectations.
The group has been selling non-core businesses to bring down £1.3 billion sterling of debt built up before the 2007 banking crisis.
It said it expected to cut costs by a further £20m in 2013 after saving some £40m so far this year.
Premier owns iconic brands such as Hovis bread, Batchelors quick meals and Mr Kipling cakes.
It posted sales from ongoing businesses, excluding milling, up 2% for the three months to September 30, helped by its focus on a slimmed-down portfolio of eight best-selling brands.
The company said it expected to raise £275m from asset disposals by the end of the year, which would cut its debts by 22%.
Premier Foods' efforts echo those of countless other European companies cleaning up their balance sheets while trying to drum up business against a backdrop of flaccid consumer demand, commodity inflation and volatile market conditions.
The food maker also said it had lost a bread contract due for renewal in mid-2013 worth about £75m in annual sales and was examining "a range of options" for its bread business, which accounts for nearly 40% of revenues.
It announced in August it was separating its bread business into a new division. Bread has proved a tricky business for Premier as well as rival Associated British Foods, as high wheat prices and costly logistics squeeze margins.
Premier has secured breathing space by securing a £1.4 billion refinancing deal in March, which requires it to make £330m of disposals by June 2014.
Earlier this year, it sold its flour brand Elephant Atta and Sarson's vinegar and said it would sell its jam and spreads business to US food maker Hain Celestial Group for £200m.
