Uncertainty post-Brexit, continuing structural change in the retail market, commodity price inflation and weaker sterling were all factors for leading UK poultry company Faccenda Foods over the past year.
While top line growth was broadly flat at £520m (£523m in 2016) for the Brackley-based company, operating profits rose from £7.7m to £11.7m.
Filing annual results for the 2017 financial year, Faccenda Foods’ managing director Andy Dawkins said the firm’s continuing investment throughout its supply chain, allied with a focus on greater efficiency and productivity had contributed to improved overall financial performance.
“This is an extremely satisfying set of results, especially given that a lot of the challenges from the previous year are still evident.
“We’ve concentrated on factors within our control, delivering year-on-year improvements in yield and productivity, to offset those headwinds and deliver a solid set of results,” he said.
In spite of the testing external environment, Mr Dawkins said he was optimistic about the future: “I’d expect cost inflation to rise ahead of wage inflation for consumers in the year ahead and contribute to another tough trading year.
“That said, poultry remains consumers’ first choice protein and our investment throughout our supply chain leaves us well placed to capitalise on future opportunities.”
The opportunities will include the potential further growth provided by the upcoming joint venture with Cargill’s UK fresh chicken business, which received Competition and Market Authority support late last year.