Profits dip at Hollands owner

FOOD manufacturer Northern Foods reported a drop in half-year profits but said it was trading in line with expectations despite uncertain market conditions.

The company, which is behind brands including Lancashire brand Hollands Pies and Fox’s Biscuits, said sales in its Frozen division had been “disappointing” but it expects second half performance to improve, as the effects of investment in the division, with the aim of improving Goodfella’s pizzas sales, takes effect.

Northern Foods saw like for like sales grow 2.7% in the 26 weeks ended October 2, with total sales down to £453m from £466.9m in the corresponding period last year.

Profit from operations was £17.5m, down from £20.5m, which reflected the loss in the Frozen business.

Chief executive Stefan Barden said: “Whilst trading conditions remain tough, we are taking decisive actions to ensure Northern Foods remains well placed for these competitive and uncertain market conditions. Our finances remain strong and we continue to trade in line with market expectations.”