Moy Park revenue falls in ‘challenging market’

By Michael Stones contact

- Last updated on GMT

Moy Park posted second-quarter revenue down by 1% to £350.7M
Moy Park posted second-quarter revenue down by 1% to £350.7M

Related tags: United kingdom, Manufacturing, Europe, Moy park

Moy Park, Europe’s largest poultry producer, has posted revenue down by 1% to £350.7M in third quarter results due to “a challenging market”.

Sales volume growth – both in its UK and Ireland and continental Europe business units – was up in the third quarter of this year but revenue was depressed by foreign exchange movements, commodity price deflation and lower international sales.

Moy Park’s earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 1.9% to £26.8M in the third quarter – excluding corporate charges from its parent company, the world’s largest meat packer JBS.

Underlying profit before tax grew by 11.8% to £10.4M in the third quarter, before corporate charges, exceptional items and interest on the bond issued last year.

Leverage – or the ratio of net debt to EBITDA – was flat at 1.9 times compared to 1.91 times at the end of the second quarter of this year.

‘Grow our revenue base’

Moy Park ceo Janet McCollum said: “The third quarter of 2015 has seen Moy Park produce a positive performance in a challenging market. Our continued commitment to our customers and consumers, ensuring delivery of the highest quality product while maintaining our focus on controlling costs, has enabled us to further grow our revenue base and improve margins.

“We have also maintained our leverage level while continuing to invest in our infrastructure to support future growth.”

While the ownership of the company has changed, the day-to-day focus of the business remained to meet and exceed our customers’ expectations, said McCollum. “Being part of JBS provides us with a major opportunity to share best practice as part of one of the world’s largest food businesses and to further enhance our offering to customers,” ​she said.

Deal worth £944.7M

Last June JBS acquired Moy Park in a deal worth $1.5bn (£944.7M)​. The business – headquartered at Craigavon in Northern Ireland – employs 12,000 people at 14 processing and production facilities in Northern Ireland, England, France, the Netherlands and the Republic of Ireland.

Meanwhile, Moy Park won the coveted Food Manufacture Company of the year​ trophy in the industry’s Oscars – the Food Manufacture Excellence Awards (FMEAs) – earlier this month.

The business won the ultimate accolade in food and drink manufacturing, after first collecting an award for the Meat and poultry manufacturing company of the year earlier in the evening.

Here’s the full list of FMEA award winners and finalists​.

Moy Park third quarter results – at a glance

  • Revenue down by 1% to £350.7M
  • EBITDA up by 1.9% to £26.8M
  • Underlying profit before tax grew by 11.8% to £10.4M
  • Leverage was 1.9 times compared to 1.91 times at the end of the second quarter

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