British food manufacturer Northern Foods said today that its first-quarter underlying sales increased by 3.5%, while its expectations for the current financial year remain unchanged.
The maker of Goodfella's pizza and Fox's biscuits said it expects full-year commodity costs will increase by about £20m sterling, together with a £12m rise in utility costs.
Overall first-quarter revenue increased by 7.6% year-on-year in the 13 weeks to June 28.
Northern Foods said the revenue growth reflected an acceleration in the price recovery of commodity inflation, with average selling prices up 5.5%.
Underlying sales volumes were down 2%, partly reflecting a move away from unprofitable private label business in frozen pizza and biscuits, the group said.
