UK: Biscuits, frozen weigh on Northern Foods
A fall in profits from its frozen and bakery divisions has weighed on full-year earnings at Northern Foods, the UK company said today (30 May).
Northern Foods, maker of brands including Fox's biscuits and Goodfella's pizzas, posted flat underlying operating profits of GBP58.2m (US$115.1m) for the year to the end of March. Revenue rose 3.1% to GBP888.5m.
Northern Foods has sold off 40% of its business in the last year and, including the impact of disposal costs, the company made a loss of GBP22.5m.
The company said that its biscuits business had "under-performed" as rising raw material costs hit earnings.
Northern Foods saw a mixed performance from its frozen business. Nevertheless, growth from the company's pizza brands failed to offset its struggling pastry and meat grill units. Underlying operating profit from the company's frozen unit fell 17%.
Northern Foods, which makes sandwiches and ready meals for Marks & Spencer, derived some comfort from its chilled business. Rising sales and cost cuts drove soaring profits from the company's chilled business, while its sandwiches and salads drove a 7% rise in revenue.
Chief executive Stefan Barden insisted the company had made "real progress" over the last 12 months.
He added: "This year will see further progress in the transition of the group. We expect to see continued opportunities for revenue growth and improved performance, particularly in the attractive Chilled markets. However, challenges remain, especially in biscuits, where we are experiencing a sustained increase in input costs."
Companies: Northern Foods
Increasingly hectic lifestyles and cultural changes, such as more women joining the workforce, would be enough to sustain growth in the ready meals market but, writes Emily Woon of Euromonitor Interna...
UK food group Northern Foods has acquired Ethnic Cuisine, a Wales-based preparerd foods supplier specialising in Oriental products, for an undisclosed sum....
Lyons Seafoods has named former Northern Foods and Grampian Halls executive Paul Succony as operations director....
Former Arla Foods executive Tim Smith has been appointed to lead the UK's Food Standards Agency....
Northern Foods, the UK group behind brands including Goodfella's pizza and Fox's biscuits, has posted rising half-year profits, as growth from its chilled business cheered the group amid a period of r...
Growing sales and profits in Scandinavia has buoyed Finland-based food group Atria, the company said today (8 November)....
Iceland-based food group Bakkavor has pointed to the "toughest trading conditions in decades" after posting a 6% drop in quarterly profits....
George Foreman Enterprises and Northern Foods have agreed a licensing agreement for the UK under which Northern Foods will launch a line of nine frozen chicken, meat and fish products called George Fo...
- General Mills sales woes continue - analysis
- Why personalisation will take-off in US food
- Comment: Meal kits in US - don't believe the hype
- US food next wave on display at Winter Fancy Food
- Column: Kraft Heinz, Unilever and sustainability
- Unilever 'lining up spreads sale'
- UK own-label firm Park Cakes sold in MBO
- Immigration crackdown "risk" for US dairy industry
- Kraft Heinz cuts jobs in US, Canada
- BRF plant suspended amid bribery allegations