ANNUAL sales of Green Isle frozen pizzas have surged past the £100 million mark following "strong growth" in exports to the UK market. Increased Green Isle profitability played a significant role in lifting annual profits of parent group Northern Foods.
With group profits edging forward 2.3 per cent to £127 million despite turmoil in the UK dairy industry and the affect of the BSE crisis on prepared beef products, the "Green Isle" factor and increased UK prepared foods profits served to lift Northern Foods shares by 6p to 206p.
"Good overall sales growth at Green Isle, combined with close attention to costs, resulted in a profit contribution that met all our expectations when we acquired control of the business in 1995," said Ms Jo Stewart, managing director of Northern Foods prepared foods division.
"Goodfella's frozen deep pan pizzas maintained their dominant position in the Irish market and achieved brand leadership in the UK where strong growth was also achieved in sales of own-label pizzas to the major retailers. The launch of `Chunky' premium breaded fillets strengthened Donegal Catch's position as the leading Irish frozen fish brand."
Batchelors, the "Beaney & Barney" canned foods business in Ireland, also owned by Northern Foods, maintained its record of consistent growth with market shares holding up well. Launch of "Sqeez Purepak" in new resealable format generated additional growth for Batchelors.
Detailed financial figures are hot disclosed for Green Isle and Batchelors. But Northern Foods yesterday disclosed increased financial figures for its European activities, mainly comprising the two Irish activities together with a biscuit-making business in Holland.
Operating profits of European activities increased by 50 per cent from £10.4 million to £15.9 million on turnover up from £117.8 million to £162.5 million. Although the figures reflect consolidation of a full year's contributions from Green Isle compared with eight months in 1995-96, the strong growth in Irish contributions helped Northern Foods to overcome difficult dairy market conditions and a £3.5 million profit reduction due to the BSE crisis.
Overall, Northern Foods profits before exceptional charges and tax edged forward 2.3 per cent to £127 million on turnover on continuing activities down £60 million at £1.88 billion. Operating profits earned on prepared foods increased 19.7 per cent to £99 million, despite an estimated £5 million BSE hit.
But dairy profits collapsed 26 per cent to £45 million, due to the £17 million affect of lower commodity prices. Mr Chris Haskins, chairman of Northern Foods, said the group was now concentrating on development of investment plans to strengthen the position of its 20 operating companies.
"We have long been committed to a strategy based on supplying the leading UK retailers with high quality food under their own labels and our brands," said Mr Haskins.
