Northern Foods has reported sales increases across its business despite “volatile” trading and soaring commodity costs.

Full-year group underlying revenue rose 3.2% and fourth-quarter underlying revenue rose 3.9%, the food manufacturer said in a trading update.

Group pre-tax profit would be ahead of median market expecations, it added. Analysts have forecast profit of between £45m and £52.3m.

In its chilled division, underlying revenue for the 13 weeks to 29 March rose 5.5%. Revenue was also up by 2.8% in its frozen division and by 1.1% in its bakery division.

Commodity costs had increased prices, but all costs had been fully recovered, Northern Foods said.

“We will continue to eliminate low margin and low volume products from our range, as well as progressively re-orientating the group towards markets growing at above average rates,” said CEO Stefan Barden.

“We are operating in a volatile trading environment with inflationary commodity prices. However, we are confident that we will continue to make steady progress in realising the full potential of the business,” he added.