Profitability has recovered for integrated poultry supplier Faccenda, despite greater supply chain competition and rising input costs.
Financial results for the 12 months to 28 April 2012 show operating profit up 60% to £4.3m on sales some 12% higher at £351m.
Hoewever, operating profit is still well short of the £8.5m achieved in 2010, but much improved on the £2.6m made in 2011. Directors described the performance as “acceptable”.
“Economic pressures continue to affect consumer confidence and spending behaviour, with consumers more willing to switch retailer and product,” says the report. “Sales of fresh primary poultry benefited from inflation in red meat and the primary market outperformed grocery as a whole.”
The directors also point to the volatility of global feed prices, driven by the EU debt crisis, reduced US credit ratings and slowing Chinese growth. “During early 2012, commodity prices continued to rise, with drought conditions in South America pushing soya costs to season’s highs.”
Looking to the future, Faccenda says it will continue to operate its existing activities, while “taking advantage of opportunities as they arise”. “Business growth will be delivered through new and improved facilities,” it says.
The bulk of company turnover is derived from UK poultrymeat sales, with EU sales shrinking to just over £1m in the trading period. Staff levels grew to just over 2,000 while the wage bill reached £46m.
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