Profits at Northern Foods slip 5%

PROFITS AT the manufacturer of Donegal Catch frozen fish and Goodfella’s pizzas were down 5 per cent at €55 million in its last financial year.

British-based Northern Foods plc reported yesterday that profits before tax for the 12 months ended March 28th were £47.5 million (€54.8 million), down from £50 million the previous year. The company blamed a reduced pension credit for the fall in profitability.

Northern Foods owns Irish manufacturers Green Isle, whose products include Goodfella’s pizzas and frozen vegetables. It also owns Donegal Catch, the fish-processing business which sells its products across Ireland and Britain.

The company does not break out figures for its Irish businesses. Revenues last year grew 4.6 per cent to £975 million. Operating profits were up almost 9 per cent at £52.7 million. The company is proposing to pay a dividend of 4.5 pence sterling a share – no change on last year. Value products account for about one-fifth of revenue and are growing sales by about 20 per cent annually, said chief executive Stefan Barden.

Supermarkets such as Tesco and Sainsbury have broadened their budget ranges as discount retailers such as Germany’s Aldi and Lidl gain market share. – (Additional reporting, Bloomberg)