Marks & Spencer sandwich supplier Uniq said the growth of its sandwich division slowed significantly in the third quarter of the financial year.

The European chilled convenience food group said growth in UK sandwich sales dropped from 13.1% in the first half to 2.1% in the third quarter.

In a trading update, Uniq said worsening economic conditions are “affecting the mix of sales towards lower added-value products and channels, and towards price discounted products. This has led to a disappointing margin performance”.

The company said that, despite the pressures, it expected to deliver a trading profit in the second half “albeit at a much lower level than last year, and still dependent on Christmas".

Overall, Uniq’s sales grew by 1.7% in quarter three, a small improvement on the 0.5% growth in the first half.