Northern Foods Q1 Sales Up

Group underlying revenue for the quarter grew by 5.5% on the prior year quarter, reflecting price increases of 1.3% and volumes ahead by 4.2%.

16/07/09 Northern Foods plc has reported in an Interim Management Statement for the 13 weeks ended 27 June 2009 (“first quarter”) that group underlying revenue for the quarter grew by 5.5% on the prior year quarter, reflecting price increases of 1.3% and volumes ahead by 4.2%. Divisional performance remains robust, with Bakery and Chilled making strong progress; and Frozen benefiting from our change programme.

The company’s Chilled division grew its underlying revenue by 9.2%, driven by the warm seasonal weather, resulting in strong demand for Sandwiches and Salads. The Ready Meals market is gradually returning to growth (TNS data), despite the warm summer weather.

Bakery underlying revenue grew by 6.8%, reflecting strong product offerings. The brand investment in Fox’s was supported by the company’s third "Vinnie" TV and online advertising campaign.  The TV campaign has been bolstered by activities on Facebook and Twitter, with an aggregate increase in the number of customers buying the Fox’s brand.

Frozen underlying revenue was down -1.5% compared to the prior year quarter, due to the closure of the company’s original pizza manufacturing site at Poldys in Ireland last year.  These and other actions will ensure full recovery of any adverse currency headwinds from these factories.  Frozen pies and meat grills continue to perform well.

Northern Foods said that their balance sheet remains strong. Net debt is similar to the prior year quarter. As usual, debt increases modestly at this time of year, reflecting seasonal working capital build.

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.'