Northern Foods Q3 sales up after solid Christmas trading

LONDON (Reuters) - Northern Foods (NFDS.L) on Tuesday said underlying group sales for the third quarter increased 3 percent and that it was confident of meeting full year expectations after a robust Christmas trading performance.

The group, which is the biggest supplier of food to Marks & Spencer (MKS.L), said year to date underlying sales were 3.5 percent ahead of last year, reflecting good progress in a challenging environment and the successful recovery of higher commodity costs.

The country's largest Christmas pudding maker said it had deepened its relationship with budget retailers such as Aldi (ALDA.O) and Lidl in recent months to become a better balanced business and reduce its reliance on M&S.

"Our key Christmas trading period has been delivered effectively and we continue to respond to the recessionary environment with new value ranges alongside our traditional premium products," Chief Executive Stefan Barden said in a statement.