Volume sales aid Moy Park revenue growth
Northern Ireland poultry producer Moy Park has seen like-for-like revenues grow in 2016.
The poultry processor saw a 4.3% rise in like-for-like revenue for the 12 months to 31 December 2016, with actual revenue down 0.3%.
The like-for-like growth was driven by favourable exchange rate movements and a 3% volume sales rise, which was aided by an increase in operational capacity.
The company’s pre-tax profit rose 334.2% for the year. This was attributed to “significant synergies and cost savings across the business”.
The business also invested £51 million over the year, which included: the completion of its Dungannon fresh primary investment, increasing capacity to 2.2 million birds per week; the completion of the Ashbourne hatchery, increasing capacity to 1.2 million chicks per week; and the capacity of its Ashbourne factory increased to over 1 million birds per week.
Janet McCollum, chief executive of Moy Park, said: “We are pleased to announce another strong full-year financial performance, delivering 3% volume growth over the period and increasing like-for-like revenue by 4.3% to over £1.4bn.
“We have delivered positive growth in EBITDA and profit before tax, and continued our strategic investment programme, positioning the company well for future growth. This strong performance was delivered against the background of a challenging grocery market.
“The company’s strong full-year performance was driven by factors including growth in fresh poultry sales, enabled by increased operational capacity, unrelenting focus on cost control, favourable exchange rate movements, and margin improvement.
“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. These standards were recognised at the prestigious Meat & Poultry Processing Awards  where we achieved the top award ‘Processing Business of the Year’.”
In its outlook for the next year, Moy Park said it would be focusing on sustainability and quality, as well as a “major investment in a state-of-the-art hatchery in England”. It added that while there was some “uncertainty” ahead of Great Britain leaving the UK, it was confident that it would thrive.
It said: “All businesses are facing economic turbulence and uncertainty resulting from Britain’s decision to leave the European Union. However, the combination of an experienced management team, an outstanding product portfolio and a robust financial position means that Moy Park is well-placed to consolidate and expand on its position as one of Europe’s leading food companies. We remain confident in the continued success and development of the business.”
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