Moy Park said the revenue growth came after increasing operational capacity and “a culture of constant innovation”. It highlighted its fresh poultry division, which had strong quarterly sales, it said.
Moy Park’s like-for-like profit before tax was down 0.8% to £14M in the 13 weeks to April 1, it reported today (May 17). Profit before tax was down 20.8% to £7.5M, which the meat processor attributed to a one off £700,000 Sarbanes-Oxley compliance cost – US legislation to improve the accuracy of corporate disclosures.
‘New state-of-the-art hatchery’
Moy Park chief executive Janet McCollum said: “We are pleased to announce good revenue and volume growth in the first quarter of 2017. We are on track to complete our new state-of-the-art hatchery in Newark, England, this year, which supports the growth of our UK operations.
“As expected, short-term performance has been impacted by headwinds, including cost inflation. However, the underlying performance of the business remains strong and our unrelenting focus on cost control, strong customer relationships and culture of constant innovation continues to provide a strong platform for future growth.”
Despite the uncertainty
Moy Park said it was pleased with its performance against the backdrop of challenging market conditions. It was well-placed to continue growth, despite the uncertainty surrounding the UK’s Brexit vote.
According to a Moy Park statement: “All businesses face uncertainty resulting from Britain’s decision to leave the EU. 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.”
Meanwhile, in January Moy Park confirmed it had created 70 jobs from its £4M investment. The investment was confirmed in November 2015, and the manufacturer could now process more than 5.5M chickens every week, it said.
Moy Park results – at a glance
- Revenue up 6.6%
- Profit before tax down 20.8%
- Like-for-like earnings before tax, interest, depreciation and amortisation down 1.1%