Northern Foods hit by rising energy bills

Goodfella’s pizza maker Northern Foods today warned that profits would fall below last year after margins were hit by higher energy costs and lower prices.

Leeds-based Northern, which makes Dalepak frozen foods, Goodfella’s pizzas and Fox’s biscuits and is the parent company of the Green Isle Food Group in Ireland, said third quarter sales rose 3% but that “sharply higher” fuel bills and discounts in its biscuits division meant second half margins would be lower.

In a trading update, Northern Foods said: “Accordingly, the group’s profits before tax for the current year are expected to fall below the prior year.”

Shares slumped 9% following the statement.