Sales dip at Northern Foods

NORTHERN Foods said it is trading “as expected” despite witnessing a slight dip in sales over the past three months.

The food manufacturer which owns Lancashire’s famous Hollands Pies has seen its like-for-like sales fall by 1.6% in the 13 weeks to July 3.

Hollands’ managing director Neil Court-Johnson is still suspended after Northern Foods accused him of planning an unauthorised management buyout deal.

In an interim management statement Leeds-based Northern highlighted its range of chilled foods, ready meals and sandwiches and salads as star performers with sales increasing by 14.3%.

Sales of its bakery products fell by 5.6% in the 13 weeks to July 3 as a result of a reduction in promotional activity. The company also “materially reduced” production of its range of bakery products to co-incide with the World Cup.

Chief executive Stefan Barden, said: “We expect to see continued challenging trading conditions. We are focused on a range of initiatives to enhance the competitive position of the group and to drive growth, with increased investment in brands, talent and technology in the first half year. With a strong financial position, Northern Foods remains well positioned going forward.”