Sales growth accelerates at Northern Foods

Northern Foods said underlying sales growth accelerated in its second-quarter as a jump in sales in its chilled and bakery divisions offset a sales fall in the frozen division.

By The Newsroom

Published 5th Oct 2010, 10:34 BST

The Leeds-based firm, which makes own-label products for retailers as diverse as premium food seller Marks & Spencer and discounter Aldi, said on Tuesday comparable sales rose 7.1 percent in its second-quarter to October 2.

That compares with a fall of 1.6 percent in the first-quarter.

Northern Foods, which makes Goodfella's pizza and Fox's biscuits, said the outcome reflected rises of 16.4 percent and 10.9 percent in the chilled and bakery divisions respectively, which offset a 16.2 percent fall in the frozen division.

"We are taking decisive actions to ensure that we are well positioned for the competitive market conditions which we are experiencing and expect to continue," said chief executive Stefan Barden.

Shares in Northern Foods have lost over a third of their value over the last year, underperforming a 5 percent rise in the UK food producers' index.

Aldi Leeds