Northern Foods: organic growth

graeme at 9:34 a.m. Wed 15 Jul 2009

The food and beverages sector continues to produce good news, with Northern Foods’ “like-for-like” (organic at constant currency excluding discontinued product categories) sales growth of 5.5% year on year in the first quarter.

As with the rest of the industry, the quarter did benefit from warm weather so the underlying trend is not this positive. Nonetheless, the sector, and this company, are doing well in the face of recession.

Northern Foods slightly improved operating margin in the year to March 2009, so it looks likely that the quarter’s improved revenues will translate into profits.

Frozen food sales remain weak, with “underlying” (used by the company as a synonym of “like-for-like”) sales down 1.5%. There is a vague mention of improvements from changes.

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