Northern Foods’ bakery division has seen like-for-like sales increase by more than 10% in its second quarter following a period of decline in Q1.

Like-for-like sales for the 26 weeks to 2 October 2010 grew by 3.3% within bakery, with sales up 10.9% in Q2 following a 5.6% drop in Q1.

The firm said its biscuit volume growth had returned to “normal levels” following its decision to return to promotional activity after the World Cup. Major investment in automated technology for Fox’s Biscuits is also proceeding to plan, it added.

The firm has also announced a new organisational structure in a bid to streamline the business and achieve cost savings. Its current three divisions: Bakery, Chilled and Frozen, will become two: Branded and Chilled.

Its Branded division will comprise Goodfella’s Pizza, McDougalls and Holland’s Pies, Fox’s Biscuits and Matthew Walker Puddings, while its Chilled division will combine sandwiches and salads with ready meals and its British Airways supply business.

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