2007 press releases

Northern Foods will hold its Annual General Meeting today at 10.30am.  Chairman, Anthony Hobson, will comment as follows:

“The Group’s trading performance in the first 13 weeks of the current financial year (covering the period 1 April to 30 June 2007) has continued in line with the Board’s expectations.  Group underlying revenue* increased by 2.6% on the prior year.  Underlying revenue performance by division was consistent with recent trends, with Chilled growing by 5.2%, Frozen up 1.1% and Bakery declining by 2.6%.  In Chilled, stronger Ready meals sales offset slower growth in Sandwiches & salads, the result of unseasonable weather.  In Frozen, our Goodfella’s pizza brand continued to perform well.  In Bakery, our actions have stabilised revenue in our Biscuits business, by better targeting of promotional activity and withdrawal from unprofitable ¬¬segments.

Trading conditions have remained challenging and the management of increases in commodity prices remains a key focus.  Nevertheless, the overall margin** for the period was ahead of the corresponding prior year period and the Group continues to benefit from lower interest expense due to reduced debt.  Although we have still much to do, we are making progress in realising the potential of the business.”

*Excludes the impact of currency rate changes, product categories no longer manufactured and discontinued operations
** Operating margin is the ratio of profit from operations before restructuring items to revenue for continuing businesses