Northern Foods said that the group’s trading performance continued in line with board expectations during the third quarter of 2006/07.
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The company also announced that its disposal programme was successfully completed on 13 January, raising a total of over GBP200m (US$393.4m) after fees and expenses.
The UK manufacturer’s growth in underlying continuing revenue slowed to 2.8% in the third quarter, due in part to losses of new business secured in September 2005 in pizza and ready meals, it said.
Frozen business revenues declined by 0.3% in the third quarter, with year to date growth of 2.7%, while pizza sales growth slowed with the annualisation of the September 2005 launch of the Goodfella’s Solos range. Frozen pastry sales continued below prior year revenues.
Year to date underlying continuing revenue at the group has grown by 3.2%, compared to the same period last year.
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By GlobalDataThe company’s continuing chilled business delivered further steady growth, it said, with underlying revenue up 5.6% in the third quarter and 8.0% in the year to date.
Ready meals and sandwiches & salads categories had good sales growth, the company reported, while continuing bakery business returned to growth of 1% in the third quarter, with year to date revenue 4.9% lower than prior year.
Northern also said that its Christmas pudding business, through the Matthew Walker brand, had a good seasonal period. The group’s biscuits offering, including the Fox’s range, stabilised its share in an “intensely competitive market which continues to see heavy promotional spend”.
Northern Foods chief executive Pat O’Driscoll said: “Christmas operational delivery was robust. Continued sales growth in our retained business is supporting the anticipated delivery of stronger performance. We have seen the successful completion of our disposal programme, achieving our targeted value within our planned timescales, and we can now focus on growing value in our core business.”
