Dutch organic food producer Koninklijke Wessanen NV has lowered its 2018 outlook, citing increased competition in France, its biggest market.
Wessanen said it had seen an "unprecedented" number of organic products introduced in May in France where rising competition was impacting its Bjorg brand.
France accounted for 57 percent of the company's revenue last year.
Wessanen reported a 0.3 percent fall in second-quarter own-brand revenue which includes Bjorg after a 4.3 percent rise in the first quarter.
ING analysts noted this was the first fall in own brand growth since Wessanen first reported the segment in 2015.
The Year Ahead
The company said it now expects moderate growth in own brands for the year versus an earlier outlook of "continued strong growth of own brands."
It expects its earnings before interest taxes and exceptional items (EBITE) margin to be flat having earlier said it expected earnings to rise.
"Our second quarter results were lower than expected mainly as a result of trade related developments in France and the UK," commented Christophe Barnouin, chief executive.
"In France, the very dynamic development of organic assortments in grocery have relatively benefitted a large number of smaller brands in place of Bjorg and have also impacted the growth in the specialised organic trade."
Barnouin added that "action plans are in place" to improve the company's performance in the coming quarters, however the "impact of Q2 means that we finish the first half of 2018 below what we had planned. As a result, we are changing our guidance for own brands growth for the year as a whole to 'moderate'."
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