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Northern Foods announces a sharp decline in its fiscal 2009 profit
Northern Foods plc has published its full-year results ending 28 March 2009.
Financial highlights
- Good sales growth, increasing total revenue by 4.6% to £975.2m (2007/08: £931.9m).
- Profit from operations up 8.9% at £52.7m (2007/8: £48.4m), after £4.2m of incremental investment in the business.
- Profit before tax at £47.5m (2007/08: £50.1m), reflecting a reduced pension credit.
- Profit for the period of £2.5m (2007/08: £34.5m), after restructuring costs of £35.4m (2007/08: £4.7m) and tax allowance changes.
- Underlying EPS of 6.45 pence per share (2007/08: 5.62p).
- Proposed dividend maintained at 4.50 pence per share (2007/08: 4.50p).
- Robust balance sheet with new Revolving Credit Facility (RCF) in place through to 2012
- Net debt £206.7m (2007/08: £200.2m).
Operating highlights
- Business successfully adapted to current retail environment; growth in discount sector and value products complementing the company’s strength in the premium market.
- Strong performance in Chilled and Bakery, reflecting the company’s superior product offering.
- Frozen division growth impacted by euro strength.
- Significant commodity cost increases successfully recovered.
Chief executive, Stefan Barden, said: “Northern Foods has delivered a resilient performance this year, in challenging economic conditions. We have successfully adapted the business to the current retail environment, while continuing to invest to enhance the trading position of the group. We have much more to do, but year by year we’re making Northern Foods a stronger and more sustainable business.
“We anticipate that next year will be equally challenging, with the continuation of food inflation and competitive pressures. Our operational and financial strengths position us well to benefit when markets recover.”
Source: Northern Foods plc
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