Underlying sales grew 2%, after what was said to be good performances in the UK, Ireland and continental Europe.
Earnings before interest, tax, depreciation and amortisation (EBITDA) climbed by 8.2% to £30.6M in the quarter, before corporate charges from Moy’s owner, the Brazilian-based JBS.
Profit before tax rose by 90% to £9.5M in the first quarter of this year. The business was said to have delivered a positive cash flow of £2.8M during the quarter.
Revenue fell by 1.6% to £347.5M compared with the same period of last year. The fall reflected the ending of its canned beef business, said the firm.
But, when adjusted for the beef business exit, underlying sales rose by 1.6%, despite “the headwinds of commodity prices deflation and lower international sales prices”.
In the UK and Ireland, revenue of £267M was down £13M on the same quarter of last year. But allowing for the discontinued canned beef business, revenue was in line with 2015, Underlying volume growth of 1.5% was offset by commodity input cost deflation and lower market prices on international sales of poultry dark meats and offal.
‘Challenging global market’
Moy Park chief executive Janet McCollum 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.”
McCollum pledged the business would continue to operate to the highest standards of food safety and quality, and to “meet and exceed the ever-evolving expectations of our customers and consumers”.
Moy Park was acquired by JBS, the world’s largest meat packer, in a deal worth $1.5bn (£944.7M) last summer.
Moy Park first-quarter results – at a glance
- Underlying pre-tax profit up by 32% to £14.1M
- Underlying sales grew by 2%
- EBITDA climbed by 8.2% to £30.6M
- Profit before tax rose by 90% to £9.5M
- Positive cash flow of £2.8M
- Revenue fell by 1.6% to £347.5M