Northern Foods is not changing its outlook for its financial year to next March in spite of an expected £20m rise in commodity costs, a £12m increase in its energy bill and a £4m impact from currency translation.

The group said that in the first quarter to June 28 sales were up 7.6 per cent with an underlying increase of 3.5 per cent. Selling prices were up 5.5 per cent as it succeeded in passing on higher costs.