Northern Foods reports profits fall

Northern Foods reported a decline in full-year profits as strong sales growth in chilled prepared foods was offset by a disappointing…

Northern Foods reported a decline in full-year profits as strong sales growth in chilled prepared foods was offset by a disappointing performance from the biscuits division.

The group announced earlier this month that it plans to sell Dublin-based Batchelors as part of a disposal of non-core operations.

Northern Foods reported a pretax profit before exceptionals of £97.5 million sterling, down from £101 million the previous year, but in line with market expectations.

Sales in the first seven weeks of the current year were up 7.6 per cent overall, and up 9.5 per cent from the five largest customers.

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The group said the strong start was assisted by the timing of Easter and recent new business gains, although it anticipates progress "may moderate" in the months ahead.

Total sales from continuing operations for the full year were up 5 per cent to £1.42 billion, driven by a 7.9 per cent improvement in convenience food sales.

Operating profit from continuing operations grew by £0.6 million to £115.6 million sterling.

Earnings per share were up 6.5 per cent to 14.81 pence.

AFP