Moy Park’s profits fell by more than half last year as a result of “unprecedented” inflationary pressure on the business.
Pilgrims Pride-owned supplier turnover increased by 4.8% to £1.53 billion in the financial year ended 31 December 2021.
The Northern Ireland-based poultry giant saw its operating profit fall 58.1% (or £50m) to 36.2m. Feed, utility and labor costs rose significantly in a ‘very difficult year’.
Cost of goods sold rose sharply, up 9.8% to just under £1.4 billion. Moy Park said, “high cost-push inflation affected the poultry industry as a whole” also led to a 7.2% increase in sales and distribution costs, reaching 68.4 million.
Suppliers have warned that 2021 inflationary pressures will continue into the 2022 financial year. This has been marked by continued concerns about the workforce and the threat of avian flu, rising feed and energy prices.
Still, Moy Park paid an interim dividends of $50 million during the fiscal year, demonstrating “excellent customer relationships and a culture of constant innovation.” A recovery in the foodservice sector “partially offset” some costs.
In 2021, the processor invested £43m in infrastructure and continued to, “secure Moy Park’s position as one of the UK’s most progressive food companies”.
Chris Kirke, President of Moy Park, said:
“Our commitment to excellence is reflected in our sustainable growth business plan and over the past year we have invested £43m in our facilities, further strengthening our position as one of the UK`s leading food companies, committed to providing fresh, high-quality and locally farmed poultry products.
“Our business is built on the highest standards of food safety and quality, and we continue to meet and exceed the ever-evolving expectations of consumers and our customers through innovation, food development, consumer insight and category marketing,” he added.
“While we operate against challenging headwinds, we are confident in our vision to be the best and most respected company in our industry. Key to our success is our focus on our people and the communities in which we operate, and I`m proud that each member of our team strives to deliver to deliver a better future for all in Moy Park.”
The suppliers’ results follow a £95.5m loss by rival 2 Sisters Food Group last year, with similar cost challenges.
2 Sisters announced the launch of a new range of branded, value-added chicken products. The range includes three new lines:
- Whole Breast Chicken Keaves with Creamy Garlic Butter
- Tempura Chicken Mini Fillets
- Buttermilk Burgers Coated in Pepper Bread Crumbs
The new products offer shoppers, “restaurant-style plates of chicken in the comfort of their own home,” Moy Park said.
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