News

Northern Foods has continued to increase sales in the first six months of the year in a "challenging" economic environment.

Price increases helped the ready meals manufacturer recover higher ingredients costs.

The firm issued a trading statement today (7 October) ahead of its unaudited financial results for the first half year to be announced on 11 November.

Revenue rose 4% excluding acquisitions, disposals and currency fluctuations in the 26 weeks to 27 September 2008.

The chilled division saw underlying revenue rise 2% compared with the previous period in 2007, driven by continued growth in ready meals of 5%.

Mothballing of the Fenland Foods ready meals facility in Grantham was completed in August and the firm will take a restructuring charge of £25m in the first half.

Sales growth has continued in the bakery division, with underlying revenue up 7% as a result of the ongoing investment in the Fox's biscuits brand.

Underlying revenue in the frozen division rose 4%, lifted by the Goodfella's pizza brand and higher selling prices.

Northern Foods chief executive Stefan Barden said the firm had achieved a full recovery of higher input costs but cost efficiency improvements would continue.

"At this stage we remain on schedule to deliver profit before tax and restructuring in line with expectations," he said.