Revenue fell by 9% at Danish Crown-owned Tulip over the year, the processor reported yesterday (June 27). The operating loss came after gross profit margins fell from 8.6% to 5.7%.
In September, a Tulip spokesman said: “Fierce competition in the retail market, increasing raw material prices, the loss of significant contracts and internal issues with productivity and pricing are amongst the challenges currently facing Danish Crown’s UK subsidiary Tulip.
“The company will end the year with a loss.”
Confirmed the loss
Today’s financial results confirmed the loss.
Tulip said it had made “significant progress” with its recovery plan since September. The meat processor restructured the organisation and introduced a new business plan, which stopped the declining performance, it said.
The firm’s ceo Steve Francis said: “Our immediate priority was to launch a major re-building and performance improvement programme, focusing on restoring excellent customer service, re-empowering the manufacturing sites to become true customer-focused centres of excellence, and to focus on producing great products reliably and efficiently, whilst speeding up customer response times.
‘Making great progress’
“This re-building programme has since progressed well. Customer service levels have been restored and some important new customer contracts have been secured. I am pleased to report that the company is making great progress on its path to recovery.”
Danish Crown revealed a five-year strategic plan in November. The UK market was highlighted as one of four key domestic markets, where market leadership positions could be maintained and enhanced, it said.
Meanwhile, Tulip bosses explained to Food Manufacture how they planned to return the business to the number-one spot. The five-year plan, growth in chilled ready meals and continued access to skilled workers were key to turning the business around, they said.
Tulip full-year results – at a glance
- £21.8M loss
- Revenue down 9%
- Gross profit margins down from 8.6% to 5.7%