Northern Foods has said it is confident of a recovery after it reported a 16% dip in profits for the first six months of the year.
Chief executive Stefan Barden said that the company will change its business model so that it incorporates long-term contracts for retailers.
He said the firm is “much stronger” than it was a few years ago and that it is a different beast entirely.
Northern is making lines for the discount retailers Aldi and Lidl, Barden said, as consumers look to trade down during the credit crunch.
He commented: “We remain confident of maintaining good progress throughout the balance of our financial year, whilst sharing the widely publicised uncertainty around consumer spending over the Christmas period.”
In the six months of the year to 27 September, Northern Foods said profits dipped £16.9 million.
The company makes a number of well-known brands such as Fox’s biscuits, Goodfella’s pizza and numerous ready meals.
Last month, the company said it expected to hit profit targets for the whole year.
It also said it was going to relaunch the Goodfella’s pizza brand, with a £2.5m marketing budget.
