Leeds / UK. (nf) British food manufacturer Northern Foods PLC says that its trading performance in the first half of 2007 has continued to be in line with its expectations.
The Leeds, England-based company noted that its underlying revenue rose 2,6 percent over last year. On a divisional basis, underlying revenue in the Chilled business showed continued growth with sales increasing above 5,4 percent from the prior year.
Northern Foods´ ready meals volumes grew strongly and its Sandwiches + salads also performed well, despite slower year-over-year growth due to the unseasonably poor summer weather.
The company says its Bakery division returned to sales growth in the first-half, by reporting a 2,8 percent increase in the underlying revenue. During the period, the company´s biscuit sales volumes increased, with higher own label volume. The company also launched The Pudding by Matthew Walker, a new premium branded offer for this Christmas.
In the Frozen division, underlying revenue declined 2,6 percent from the previous year. While, Goodfella´s pizza continued its robust performance in the first-half, Dalepak meat grills business showed weak performance due to the adverse impact of poor barbeque season. The company says it is implementing restructuring actions to reduce the cost base significantly in this division, supported by the launch of a new George Foreman premium grilling range.
Northern Foods, however, warns that significantly higher commodity costs expected for the remainder of this financial year, will result in material costs of about four to five percent higher than the prior year, representing an annualized impact of about eight to ten percent.
Matching with current market trends, commodity prices have continued to grew during the last three months, especially in cereals, dairy, cocoa and fats, reflecting difficult global market conditions and constrained UK supply. Despite this, the company says it has made good progress in the period (press release).
OTHER TOPICS FROM THIS SECTION FOR YOU:
- Cloetta AB: announces Q2-2024 interim report
- Axfood AB: Reports Q2-2024 Financial Results
- Chef Robotics: Launches AI-Powered Food Robot
- Conagra Brands: Reports Fourth Quarter 2024 Results
- Limerston Capital sells Village Bakery to Groupe Menissez
- GrubMarket: Buys Major Foodservice Company in Texas
- Lantmännen acquires Entrack AB
- DPC Dash: Concludes H1-2024 with Sustained Expansion
- Norway: Orkla Food Ingredients acquires FDE
- Fondo Italiano d’Investimento co-invests in Casa della Piada
- Greggs: invests in a new frozen manufacturing and logistics site
- Bundeskartellamt imposes fine against «Fritz!» manufacturer AVM
- Yum China: Celebrates Opening of its 200th KCoffee Store
- Beijing intends to roll out 5’400 food production robots
- K-Citymarket: sees significant sales growth in Finland
- DPC Dash: reaches 900-store milestone in China
- Coffee Holding: Terminates Merger with Delta Corp Holdings
- Perkins Restaurant + Bakery: introduces new brand identity
- Engelmans Bakery: acquires St. Armands Baking Company
- National DCP: Breaks Ground on New Distribution Center