Warm weather boost for Northern Foods
FOOD manufacturer Northern Foods will tell shareholders today that it is making continuing progress in “competitive conditions” and expectations for sales and profits remain unchanged.
The firm, which has its annual general meeting in Leeds this morning, said that group underlying revenue for the first quarter grew by 5.5% for the 13 weeks ended June 27 reflecting price increases of 1.3% and volumes ahead by 4.2%.
Its chilled division saw value lines growth of 9.2% while sales in its bakery division rose 6.8%.
Warm weather has driven strong demand for salads and sandwiches although Northern Foods said that the ready meal market was making a return to growth despite the good weather.
The manufacturer said that its continuing Fox’s biscuits ‘Vinnie’ campaign was being bolstered by Facebook and Twitter.
Stefan Barden, chief executive of Northern Foods, said: “We have made a good
start to the new financial year.
“Our focus upon high quality products, to serve a range of tastes and budgets,
positions us well to continue our progress. We have much more to do and have a
range of initiatives to drive the business forward.”
In May, Northern Foods announced that it was looking to close its Hull ready meals factory as contracts with the plant’s main customer Morrisons had been terminated. The plant also supplied Asda.
Around 350 jobs will be affected by the closure.
Northern Foods said that the decision followed the conclusion of negotiations to seek mutually “acceptable and commercially” viable terms for the business.
