LONDON (Thomson Financial) - Northern Foods Plc. said its expectations for
this fiscal year remain unchanged, with profits weighted to the
traditionally-stronger second half while first-half results reflect investments
in brand re-launches and startup costs.
In an interim management update, the pizza and sandwich maker's chief
executive Stefan Barden said the market environment remains challenging but
added that the company's strong balance sheet and robust business model leave it
well-positioned to cope.
First-quarter group revenue rose 7.6 percent year on year, while underlying
revenue was 3.5 percent higher and in line with the trend seen last fiscal year.
Growth in overall chilled food markets has slowed as expected while revenue
from the ready meals business continued to grow, helping to offset slower
growth in sandwiches and salads due to indifferent summer weather.
Net debt in the first quarter rose to 227.3 million pounds compared with
200.2 million pounds at prior year-end, due to the normal pattern of seasonal
working capital build, together with the company's continued share buyback.
TFN.newsdesk@thomson.com
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