Batchelors turned in "a good performance" with improvements in sales and profits, said Mr Sean Christie, finance director of parent group Northern Foods.

But interim results of the Green Isle's Goodfella's pizza business, also owned by Northern Foods, continued to be affected by under-recovery of cost increases during the first quarter.

Margins were restored through price rises in the second quarter.

Lord Haskins, the chairman of Northern Foods, will step down next year after 20 years in the post.

His successor is to be Mr Peter Blackburn who retired in June as chairman and chief executive of NestlΘ UK, the British subsidiary of the Swiss food giant.

His impending retirement was announced alongside figures detailing an 8.6 per cent fall in pre-tax profit to £38.4 million sterling (€62.84 million) on sales up 6.2 per cent at £698 million.

Reduction in pre-tax profit was partly due to an increase in interest charges due to higher borrowings caused by share buy-backs.

Operating profit before exceptional items and goodwill amortisation was barely changed at £50.1 million.

The direction of future results in Ireland will partly depend on the build-up of a new Goodfella's range of premium pizzas being produced at the Lacemount factory in Longford, acquired in January by Green Isle in January.

Overall, Green Isle has spent £24 million on buying the Lacemount factory and installing new plant and equipment.