Northern Foods jumps as warm weather boosts barbecue sales
FOOD manufacturer Northern Foods yesterday reported solid first-quarter trade, boosted by warm weather, and said it was optimistic it could beat full-year profit targets, lifting its shares by 12.2 per cent to 61.7p.
Northern Foods, which makes food products and ready meals for retailers as diverse as Marks & Spencer and Aldi as well as its own-branded goods, said underlying sales grew 5.5 per cent in the 13 weeks to June 27.
That rise reflected volume growth of 4.2 per cent, price increases and strong sales of barbeque food and salads. Tesco, Britain’s biggest retailer, became its largest customer during the quarter. The group recently closed a plant after losing an order to supply Morrison’s and said foodmakers would likely shut more sites in coming years as the industry consolidates.