Faccenda Foods reports strong profit growth

Oxfordshire poultry integrator Faccenda Foods has posted strong trading figures for the 12 months ending April 2014, with profits before tax more than double those in the previous period.

Its latest financials had pre-tax profit at £11.3m, against a turnover of almost £420m – up some £53m when compared with 2012-13. Cost of sales rose by a more modest £43m to £373m. 

See also: Faccenda named poultry industry’s richest

The company says in a trading review for the period that, despite a 2.3% decline in volume, price inflation at 6.1% had held up value in the poultry sector.

It also says a desire for traceability from its customers had seen a number of longer-term agreements reached.

“We remain confident that with our strong balance sheet and great people, we can continue to reinvest to grow our business, drive our strategy and build on these results to deliver strong performance.” Andy Dawkins, managing director Faccenda Foods

Faccenda Foods acquired 100% of the share capital of Cranberry Turkeys in April 2014, for which it paid £44.2m. A note said the business made £3.5m over a 16 month trading period to April 2014.

The firm recently announced the intended purchase of Cherry Valley’s duck processing business, which would make it the only UK supplier of chicken, turkey and duck. 

Managing director Andy Dawkins said the results represented a fourth consecutive year of improvement.

“We knew that continued success this year would be underpinned by leveraging the benefits of running one integrated food business, investing in our supply capability and providing first-to-market innovation for our customers and we believe we have been able to deliver these.”

He pointed to the completion of a £35m processing facility at the firm’s Brackley headquarters as a positive development.

“We remain confident that with our strong balance sheet and great people, we can continue to reinvest to grow our business, drive our strategy and build on these results to deliver strong performance.”