Northern Foods has reported trading “in line with expectations” for the 13 weeks to 30 June.

Group underlying revenue increased by 2.6% during the period, the food manufacturer said in a trading update ahead of its agm later today.

Sales in its Chilled business rose 5.2%, as stronger ready meals sales offset lower growth in sandwiches and salads.

Sales were up 1.1% in its Frozen division but fell 2.6% in its Bakery business, where Northern Foods said sales had been stabilised in biscuits by targeting promotional activity and withdrawing from unprofitable segments.

“Trading conditions have remained challenging and the management of increases in commodity prices remains a key focus,” added chairman Anthony Hobson. “Although we have still much to do, we are making progress in realising the potential of the business.”