Northern Foods: Robust trading completes solid Q3 performance

Leeds / UK. (nf) Northern Foods PLC reported a three percent rise in its third quarter group underlying sales, helped by robust Christmas trading across all divisions, «reflecting good progress in a challenging environment». The company also remains confident of meeting current market expectations for the full year. Summary for the 13 weeks ended 27 December 2008 (Q3/2008):

• Group underlying sales for third quarter increased by 3,0 percent
• Total sales for third quarter, including Fenland impact, up 0,5 percent Year to date underlying sales ahead 3,5 percent
• Year to date total sales, including Fenland impact, ahead 4,3 percent
• Group trading performance in the third quarter reflected good progress in a challenging environment.
• Underlying revenue increased by 3,0 percent on the corresponding prior year quarter, reflecting continued successful recovery of higher commodity costs.
• Average prices were 3,8 percent higher and volumes 0,8 percent lower during the third quarter.
• In the year to date, underlying revenue increased by 3,5 percent, with prices 4,9 percent higher and volumes down 1,4 percent.

By division, underlying revenue in Chilled grew 5,3 percent, with good progress in Ready Meals driven by strong repeat purchase rates, despite a declining market. The Bakery division enjoyed solid seasonal demand in its key Christmas trading period. Third quarter underlying revenue was up 1,9 percent, with average prices increasing by 2,0 percent. In Frozen, underlying revenue, before currency, was stable year on year. Average prices rose by 7,0 percent as commodity cost inflation was successfully recovered; with volumes down by 7,1 percent as Northern Foods exited some marginal own label contracts in pastry and pizza (press release).