Northern Foods, the UK food group, today (9 November) posted half-year losses of over GBP9m (US$14.5m) as its frozen food business suffered from competition in the pizza category.

The company, which owns the Goodfella’s pizza brand, booked a first-half loss of GBP9.5m for the 26 weeks to 2 October, against a profit of GBP12.9m a year earlier.

Revenue was down 3% at GBP453m. However, first-half like-for-like sales grew 2.7% after a 6% rise in the second quarter.

Northen’s profit from operations reached GBP17.5m, down from GBP20.5m a year ago. The company’s chilled and bakery businesses posted rising sales and profits but its frozen arm fell to a loss of GBP4.6m. Last year, frozen delivered a profit of GBP12.9m. Frozen sales were down 24.4% at GBP94.7m.

The group said the frozen category remained “very challenging” and admitted its recent investment in Goodfella’s had not led to “profitable sales growth”.

Chief executive Stefan Barden said: “Whilst trading conditions remain tough, we are taking decisive actions to ensure Northern Foods remains well placed for these competitive and uncertain market conditions. Our finances remain strong and we continue to trade in line with market expectations.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Shares in Northern were down 1.1% at 45.5p at 10:56 GMT this morning.

Click here for the full statement from Northern Foods.