CHILLED foods group Northern Foods has warned first-half profits were likely to be hit by "significantly higher" costs for meat, fish and dairy products.
The Hull-based group, a leading supplier of ready meals to Marks & Spencer and the country's major supermarkets, said inflation was returning to the food industry for the first time in years.
While it had managed to raise its own prices, the delay in passing the higher costs on to shoppers meant first quarter profits for the three months to June 30 had dropped below last year's levels. Although the second-quarter would show an improvement, it was unlikely to rescue the first-half performance.
In May, Northern Foods reported pre-tax profits of £104.7m in the year to March 31, a 3.9 per cent increase on the year.
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