Northern Foods trading ‘solid in a challenging market’
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The pizza to Christmas puds group Northern Foods said today (1 June) that it was trading solidly in tough market conditions that it expected to continue. The group said that its financial year that ended on 3 April saw a strong performance from its bakery division. It had re-focused on core product strengths in its frozen foods operation, while chilled food sales growth was driven by sandwiches and salads. It had also instigated a change programme in the ready meals business to strengthen its operating position.
Northern said it was also investing for growth, re-launching its Goodfella's pizza brand, commencing a 10 year British Airways supply contract and securing new Costa Coffee business. Its major investment in the biscuits business, called Project Golden, was also on track.
Chief executive Stefan Barden (pictured) said: "Northern Foods has traded solidly in challenging market conditions. We expect these conditions to continue, but we remain well positioned for the future.
"Even during these uncertain economic times we continue to invest in brands, cost efficiency and technology to deliver long term shareholder value supported by our strong financial position.
"During the first half of our new financial year, the Group will see increased costs from various initiatives including the Goodfella's pizza marketing campaign."
Revenue for the year was £977 million (2008/9: £975.2m) while pre-tax profit fell to £34 million (£47.5m).
