Northern Foods: annual profit jumps 25 percent

Leeds / UK. (nf) Northern Foods PLC, largest UK maker of prepared meals, producer of Goodfella´s pizzas and Fox´s biscuits, reported a 25,3 percent rise in full-year earnings, at the upper end of market expectations and driven by an improved trading performance.

• Operating highlights in the fiscal year 2007/2008 (… ended 29 March):
  • Good progress in first year of the Group´s three year strategic plan
  • Strong Chilled and Bakery performances; action plan initiated to address Frozen performance
  • Continued focus on above average market growth and operational simplification, delivering revenue and profit improvements
  • Bolt on acquisition strategy extending presence in attractive growth markets
  • Significant commodity cost increases successfully recovered

• Some financial highlights in the fiscal year 2007/2008:
  • Continuing profit before taxation up 25,3 percent at 50,1 million GBP (2006/2007: 40 million GBP)
  • Profit for the period 34,5 million GBP (2006/2007: loss 22,5 million GBP)
  • Strong cash management continues to drive low net debt at 200,2 million GBP (2006/2007: 174,2 million GBP)
  • Proposed dividend up 5,9 percent at 0,045 GBP.

Commenting the results, CEO Stefan Barden said: «We have made good progress during the past year in delivering our strategic plan. Our profitability and return on invested capital have improved. Our Chilled business has again achieved strong revenue and profit growth, and the progress made in our Bakery performance has been particularly pleasing. We continue to take forward our plans to improve profitability in our Frozen division. The current trading environment remains challenging, with continuing commodity cost pressures which we are committed to recovering. Despite some caution, we expect the underlying business to continue to make good progress in 2008/2009» (source).