Food giant serves up robust sales figures
A “robust” Christmas helped food giant Northern Foods complete a solid third quarter.
The company, which makes Fox’s Biscuits amd Hollands Pies, said today that group trading performance in Q3 reflected good progress in a challenging environment.
Underlying revenue for the 13 weeks ending December 27 increased by 3% on the same quarter last year with revenue for the year to date increasing by 3.5%.
Northern has a number of sites in the North West. As well as Hollands, which is based in Baxenden near Accrington, it has a Fox’s factory in Preston, a chilled ready meals facility in Carlisle and a sales office for its Green Isle seafood brand in Salford Quays near Manchester.
Average prices were 3.8% higher and volumes 0.8% lower during the quarter with prices 4.9% higher and volumes 1.4% lower for the year to date.
Northern said each of its divisions had performed strongly with chilled foods increasing revenue by 5.3% boosted by new value ranges including chilled pizza, value sandwiches and salads.
The Fox’s brand helped the firm’s bakery division enjoy healthy demand with revenue up 1.9%. Own label puddings including the ‘Scrummie’ range saw good performance as did sales of premium and seasonal biscuits.
Cash conscious consumers were attracted to San Marco pizza and McDougall’s frozen pies following a re-launch of both brands.
Chief executive Stefan Barden said: “Our key Christmas trading period has been delivered effectively and we continue to respond to the recessionary environment with new value ranges alongside our traditional premium products.
“Northern Foods is now a different company than two years ago. It is both financially and operationally stronger. While we share the market uncertainty
over consumer spending going into 2009, this seems to be less pronounced in food than other sectors.
He added: “We remain confident of maintaining our steady progress and meeting current market expectations for the full financial year.”
