Integrated poultry supplier Faccenda has reported declining profits for 2010/11, despite seeing a 14% increase in sales to £313m.
Its 12-month financial report, ending on 30 April 2011, showed operating profits had plummeted from £8.5m in 2010, to £2.6m in 2011.
Faccenda cited continuing economic pressures as the cause.
“Economic pressures continued to impact consumer confidence and spending across the meat sector,” said the company’s directors in their annual report, which was recently submitted to Companies House.
The report said feed costs rose to 30% between November 2010 and April last year, resulting in profit margins being squeezed even tighter.
Although the directors agreed customers had responded to escalating costs with progressive price increases, they said the delay of those increases had a considerable impact on profitability last year.
The report revealed UK turnover rose by 13%, from approximately £273m in 2010 to £310m in 2011, making up the bulk of all sales.
Faccenda said it would continue to seek new opportunities to further growth.
“Business growth will be delivered through new and improved facilities.
“The company will continue to invest a significant share of operating cash flow to maintain and enhance the high standard of its fixed assets in order to satisfy the demands of its key strategic customers,” they added.