Volume growth drives Moy Park sales in second quarter
Processor Moy Park has seen a steady second quarter of the year, with any positive sales figures being driven by volume growth.
In the 13 weeks to 2 July 2016, the group’s overall underlying sales volume grew 5% compared with the same period in 2015 while revenue increased 1.2%. However, when adjusted for the discontinued canned beef business, revenue grew 4.3%.
Underlying profit before tax grew 35% to £16.8 million, while net debt reduced to £138m.
Moy Park’s UK and Ireland division fared less well: revenue for the region was down £5m on the same period last year, although adjusting for the discontinued canned beef business pushed it into £2.1m growth. A strong volume sales growth of 7.3% was also offset by input cost increases and lower market prices.
Continental Europe revenue was up 3.1% year-on-year. This was attributed to “favourable product mix” as well as solid volume sales.
Janet McCollum, chief executive of Moy Park, said: “The second quarter of 2016 has seen Moy Park continue its solid start to the year, delivering revenue growth and improving underlying profit before tax by 35%. This positive performance is set against the background of a particularly challenging market and our progress continues to be built on a platform of strong customer relationships, innovation, improved efficiency and cost control.”
McCollum added that the business had been awarded for its high standards over the past year.
“We continue to build our business to the highest standards of food safety and quality, and to meet and exceed the ever-evolving expectations of our customers and consumers. This focus has resulted in yet another period of pleasing continued growth.
“Our high standards have been recognised across our industry, most recently at the Royal Society for the Prevention of Accidents Awards, where we achieved the prestigious Food & Drink Sector Award for Most Outstanding Performance in Health & Safety for the second year in succession. This builds on our earlier achievement of Processing Business of the Year at the 2016 Meat & Poultry Processing Awards.”
Looking ahead to the rest of the year, the business hopes to maintain its progress and high standards, said McCollum.
“Moy Park continues to make positive progress and once again has delivered both volume and margin growth. High quality standards of animal husbandry, production and processing and a determination to meet and exceed the continually changing requirements of customers and consumers remain key to our success. We continue to focus on productivity, to innovate and to invest in our assets for future growth. An experienced management team, a strong product portfolio and a robust financial position puts Moy Park in an excellent position to handle the ongoing economic challenges. We remain confident in the continued success and development of the business.”
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