Dunbia acquisitions push down pre-tax profits
Northern Irish meat giant Dunbia has recorded another successful year with a turnover of £769m, but a year of new acquisitions and contracts has seen pre-tax profits fall.
Dunbia posted its results for the year ending 31 March 2014 on Companies House and said its impressive turnover was due to a continued focus on product development, volume throughput and price inflation.
However, pre-tax profits for the company fell during the course of the last financial year, dropping by almost £3m to £4.6m.
Dunbia incurred “significant” one-off costs of £1.5m as it sealed a contract with a major supermarket. The company has lucrative contracts with Sainsbury’s and Asda.
Dunbia also acquired several meat and property companies within 10 months. These included; 50% shareholdings of property development company Dunrus; 100% of pig processor Wood and Sons Holdings, and 100% of Lynch Quality Meats in Ayrshire.
Director Jim Dobson acknowledged the challenges of the industry in his outlook statement: “The strategy for the coming period will be continue to be that of product development and volume growth. While the group and the industry as a whole have battled with fluctuating/increasing livestock prices, the group has been able to work closely with customers in retaining gross profit margin and will continue to do so. The focus each and every period is heavily weighted towards maintaining a stable, high quality supplier base.”
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