U.K.-based poultry company, Faccenda Foods, has reported a 52 percent increase in operating profit for the 2017 fiscal year compared to the previous 12 months.
While revenue for the year was hardly changed at GBP520 million (US$721 million), operating profits at Faccenda Foods were GBP11.7 million (US$16.2 million) — up from GBP7.7 million the previous year.
“This is an extremely satisfying set of results, especially given a lot of the challenges from the previous year are still evident,” said Managing Director Andy Dawkins.
Dawkins identified those challenges as uncertainty after the Brexit vote, weaker Sterling, commodity price inflation, and changes in the retail markets, while Faccenda Foods focused on delivering year-on-year improvements in yield and productivity.
With costs forecast to rise ahead of wages in the coming year, poultry meat looks likely to remain consumers’ favorite protein.
“The improvements we made in the last financial year will help create a springboard for further growth as part of our upcoming joint venture with Cargill’s U.K. fresh chicken business,” said Dawkins.
In September 2017, Faccenda Foods and Cargill announced the formation of a joint venture poultry company in the U.K., an agreement that was cleared by the European Commission in November, and by the U.K.’s Competition and Markets Authority at the end of last year.
In its most recent financial results, Cargill reported adjusted operating earnings down slightly for the first half-year compared to the same period of the previous year, but strong performance in its Animal Nutrition and Protein business. Cargill’s chairman and CEO commented that the firm had announced more than US$1 billion in acquisitions, joint ventures and new investments during the quarter.
