Moy Park, a leading European food company, providing fresh, high quality and locally farmed poultry and convenience food products to major retailers and foodservice customers, has announced its results for the quarter ended 2 April 2016.
There was underlying sales volume growth in both UK & Ireland and Continental Europe during the period. Underlying revenue increased by £5.6m to £347.5m compared to the same period in 2015. The revenue increase was driven by continued volume growth and was achieved despite commodity input cost deflation and lower market prices on international sales of poultry dark meats and offal.
EBITDA before corporate costs increased by £2.4m to £30.6m. The improvement in margins was the result of increased operating efficiencies across the business and our ongoing focus on cost control, which more than offset the lower prices on international sales.
The UK & Ireland revenue of £267m is £13m below the prior year. When adjusted for the discontinued Canned Beef business, revenue is in line with 2015, with the underlying volume growth of 1.5% again being offset by commodity input cost deflation and lower market prices on international sales of poultry dark meats and offal.
European revenue of €105.4m is 8.3% ahead of prior year with good volume growth across our poultry and beef categories, combined with favourable product mix.
Following a positive start to the year, the firm is pleased with the continued progress being made in the business.
Janet McCollum, Chief Executive of Moy Park, said, “We are pleased to announce a solid start to the year in the face of a challenging global market. The company has delivered a 32% increase in underlying profit before tax and continues to achieve volume growth. Underpinning this progress is a continued focus on efficiency and cost control, and we are beginning to see the benefits from being part of JBS. This robust performance was delivered against market headwinds including commodity price deflation and a challenging export market.
'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 have been recognised across our industry most recently at the prestigious Meat & Poultry Processing Awards where we achieved the top award ‘Processing Business of the Year’.”