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Northern Foods Sees Profit Rise

19 November 2007 10:07 Company Profile

Northern Foods, the Leeds-based ready meal, sandwich and pizza manufacturer, has announced a pre-tax profit rise of 37.7 per cent.

The rise to £20.1 million in the 26 weeks to 29 September exceeded analyst expectations by £0.6 million.

“We continue to work to improve ongoing profitability from our business. The markets in which we operate remain challenging and we retain a degree of caution in light of the current pressure on the consumer,” the company said in a statement.

These pressures are centred mainly on the rising cost of raw materials, such as cereals and dairy products, which are then passed onto the customer through product price increases. The company said that, in view of this, “the resultant potential impact on future sales volumes remains unclear.”