Pig crisis blunts Unigate profit

08 June 1999

Pig crisis blunts Unigate profit

By FWi Staff

UNIGATE Plc has blamed crisis in the pigmeat industry and tough conditions for chilled foods for a 3.1% fall in pre tax profits to £141.9m in the year to 31 March.

Earnings per share, before exceptional items and goodwill amortisation were down 3.4% at 44.9p. The total dividend will be 23.2p per share, up 5.5% on last year.

Fresh foods plummeted by 18.5% which includes Malton Pigs. Overproduction in Europe was a major contributor as was the loss of markets in Russia and Asia, said finance director John Worby.

To reduce costs Unigate plans to close its Spalding plant which will include the loss of 350 jobs. Mr Worby did not rule out the possibility of importing more pigs to further reduce costs.

In comparison dairy profits rose 6.4% reflecting lower costs. Unigates dairy profit performance compares with a rise in pre tax profits of 9.3% from Express Dairies and a lift of 14% in pre tax profits announced by Dairy Crest last month.

Against these profit rises was a sharp fall which dairy farmers received for their milk.
Average incomes dropped more than 8% in the same period to just over 20ppl.

Ross Buckland, Unigates chief executive said that in a challenging year, the overall result includes good performances in a number of businesses.

“Our commitment to investing in growth sectors of the food processing market has been reinforced since the year end with the acquisition of Terranova Foods and the intended acquisition of the Marie French foods business.”