Northern Foods turnaround sees profits rise

Britain's Northern Foods reported a 5.8 per cent increase in first-half profits today.

Britain's Northern Foods reported a 5.8 per cent increase in first-half profits today.

Profit before tax and exceptional items rose to €38.2 million in the six months to October 1st.

The frozen foods division delivered a 3.8 per cent increase in underlying sales, and the bakery division increased sales by 6.9 per cent. The chilled division's sales of pizzas, sandwiches and ready-meals were flat, however.

"Profitability in the chilled division is not at an acceptable level," said chief executive Pat O'Driscoll.

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After joining the company from oil giant Shell last April, she quickly shut two factories and cut 30 management posts and 1,000 other jobs to help turn around the ailing firm.

Northern Foods shares jumped 6 per cent to 153p by 9am, making it the second-biggest midcap gainer and valuing the group at around €1.1 billion.

Northern Foods said it had gained market share with Fox's biscuits, Goodfella's pizzas and Pork Farms savoury pastries, and that it had won new contracts with its supermarket clients.