Northern Foods sees sales drop

Danny Morgan
Posted: Wednesday, July 14, 2010 3:51 pm

Northern Foods sees sales drop

Northern Foods has reported a decrease in like-for-like sales of 1.6 percent for the first quarter.

Northern Foods put the drop down to its decision to pull out of low-margin contracts as well as the end of its contract with Birds Eye. Frozen like-for-like sales had dropped 24.9 percent in the period to July 3.

Not all divisions had seen a dip, with chilled like-for-like sales up 14.3 percent, but bakery sales declined 5.6 percent. The company said this was due to less promotional activity.

Stefan Barden, Northern Foods chief executive said he expected conditions to remain "challenging".

"We are focused on a range of initiatives to enhance the competitive position of the group and to drive growth, with increased investment in brands, talent and technology in the first half-year,” he said.

“Northern Foods remains well positioned going forward.”

The group maintains that it will continue to invest and support its Goodfella's pizza brand, while it predicted that the automation of the Fox's Biscuits production facility would help boost earnings.