Irish food company Batchelors may be put up for sales after British parent company Northern Foods said today it would sell off non-core businesses in a bid to revive sagging profits.
Northern Foods reported a 16 per cent fall in first-half profits today but said it aimed to stabilise second-half profits at last year's level, following three profit warnings in the past two years.
The company, which also owns the Green Isle brand in Ireland, is restructuring and plans to sell non-core businesses and centralise raw material buying to help recover profit margins.
The firm was caught out two Christmases ago by a late surge of orders and last January by a slump in biscuit sales. This September it blamed hot weather, higher raw material prices and loss of a chilled pie contract with J Sainsbury for the damage.
The maker of Goodfellas pizzas had underlying pre-tax profit of £32.5 million in the half year to September 30th, down from £38.8 million last year .
The group's September profit warning led to the departure of its chief executive Mr Jo Stewart, with chairman Mr Peter Blackburn temporarily taking over. He expects to announce a new chief executive by the end of the year.