Group underlying revenue for the first quarter grew by 5.5% on the prior year quarter, reflecting price increases of 1.3% and volumes ahead by 4.2%. Divisional performance remains robust, with Bakery and Chilled making strong progress, and Frozen benefiting from the company’s change programme.
The Chilled division grew its underlying revenue by 9.2%, driven by the warm seasonal weather, resulting in strong demand for sandwiches and salads. The ready meals market is gradually returning to growth despite the warm summer weather.
Bakery underlying revenue grew by 6.8%, reflecting strong product offerings. Northern Foods’ brand investment in Fox’s was supported by its third ‘Vinnie’ TV and online advertising campaign. The TV campaign has been bolstered by activities on Facebook and Twitter, with an aggregate increase in the number of customers buying the Fox’s brand.
Frozen underlying revenue was down -1.5% compared to the prior year quarter, due to the closure of the company’s original pizza manufacturing site at Poldys in Ireland last year. These and other actions will ensure full recovery of any adverse currency headwinds from these factories. Frozen pies and meat grills continue to perform well.
Source: Northern Foods
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