Northern Foods has reported a 3.5% increase in underlying revenue for the 13 weeks to 29 December.

Underlying revenue, which excludes products no longer manufactured, acquisitions and discontinued operations, rose 3% in its chilled division and 4.2% in its bakery division, but fell 0.9% in its frozen business, the food manufacturer said.

The figures were boosted by a move to higher added-value products and the successful recovery of commodity cost increases.

“Despite the continued challenging market conditions, we are confident that we will continue to make progress in realising the full potential of the business,” added CEO Stefan Barden.