Success in pushing through price increases to cover higher costs has led to a rise in half-year sales at Northern Foods, the UK food group.
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In a trading update issued today (7 October), the maker of Fox’s biscuits and Goodfella’s pizza said revenue was up 6.5% during the six months to 27 September.
Northern said price increases had offset lower volumes, which dipped 1.7% thanks “partly” to “marginal contracts” that the company had exited in the last financial year.
On a an underlying basis, revenue was up 3.9% on the year.
Underlying sales from Northern’s chilled business rose 2.4%, as ready meals sales climbed 4.5%.
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By GlobalDataInvestment behind the Fox’s brand pushed up sales from Northern’s bakery division, which rose 6.7% on an underlying basis.
Underlying revenue from Northern’s frozen food business increased by 4.1%, thanks to higher prices, as margins at the company’s Irish business were hit by the stronger euro.
Chief executive Stefan Barden said: “Northern Foods continues to make good progress in the development of our business, despite the challenging environment. Although profits are weighted to the second half of the year, at this stage we remain on schedule to deliver profit before tax and restructuring in line with expectations.”
Northern is set to publish its interim results on 11 November.
