Northern Foods: Commodity inflation drove prices 5,1 percent higher

Leeds / UK. (nf) Northern Foods PLC is managing to pass on all rises in commodity prices to its customers, the company said in a trading update, covering the three months to 29 March: «The group continued to fully recover commodity cost increases, as it has done throughout the year».

Northern Foods said trading performance remained in line with expectations. Group underlying revenue for the full year to 29 March was up by 3,2 percent. Fourth quarter underlying revenues were up by 3,9 percent on a year ago, but volumes were flat. Chilled division revenues were up by 5,5 percent in the fourth quarter, with volumes growing by 3,4 percent. Sandwich + Salads volumes were well ahead, Northern Foods said.

Frozen underlying revenues grew by 2,8 percent in the fourth quarter. Commodity inflation drove average prices 5,1 percent higher, while volumes fell «modestly». Bakery showed «encouraging signs of recovery» with fourth quarter underlying revenue up by 1,1 percent. Average prices were 7,5 percent higher as Northern Foods recovered the hike in raw materials costs from its customers.

CEO Stefan Barden said: «We will continue to eliminate low margin and low volume products from our range, as well as progressively re-orientating the group towards markets growing at above average rates. We are operating in a volatile trading environment with inflationary commodity prices. However, we are confident that we will continue to make steady progress in realising the full potential of the business».

bakenet:eu