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Northern progresses in tough market but Christmas uncertainties remain
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11/11/2008
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Reporting its half year results today (11 November) Northern Foods said it had become a better balanced and more resilient business, which was making good progress despite tough market conditions.
Posting results for the 26 weeks ended 27 September, the food giant reported strong sales growth, increasing total revenue by 6.8% to £468.6 million although pre-tax profit, at £16.9 million, was down from £20.1 million over the same period last year having been impacted by currency and pension credit changes and “investment in our brands”.
The Fox's biscuit brand drove increased household penetration in the bakery division, while the frozen foods business was “well positioned for [the] current environment”, reflecting Goodfella's number one position in the pizza market, the successful integration of Northern’s McDougall`s pastry acquisition, together with rationalisation at the pizza site.
Chief executive Stefan Barden (pictured) said: “Northern Foods is a new and much stronger company. Over the past two years we have created a better balanced and more resilient business, which is making good progress despite these tough market conditions.
“We have successfully responded to the current economic environment by introducing value product ranges for our customers, including the discounters. Our traditional premium ranges continue to be successful and we have a good proposition across all market segments. In these market conditions, we remain focused upon growing our brands, operational efficiency and maintaining our strong balance sheet. We remain confident of maintaining good progress throughout the balance of our financial year, whilst sharing the widely publicised uncertainty around consumer spending over the Christmas period.”
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Author
Ken Hurst
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