Moy Park sees turnover jump by £3.9m for second quarter
Moy Park’s turnover increased by £3.9m to £360.3m for the second quarter (Q2) of 2015, compared with the same period in the previous year.
The revenue increase was driven by good volume growth in the UK, Ireland and Continental Europe.
This was partially offset by commodity input cost deflation, the strengthening of Sterling – relative to the euro – and lower prices achieved on international sales of poultry dark meats and offal.
Earnings before interest, taxes, depreciation and amortisation (EBITDA), not including corporate costs of £1.7m, increased by £4.6m to £31.2m, it said.
The improvement in margins was the result of increased operating efficiencies, particularly across the company’s convenience product range, while it said an ongoing focus on cost control more than offset the lower prices on international sales.
Q2 revenues for the UK and Ireland totalled £281.2m. This was ahead of Q2 2014 with underlying growth of 3.1%. European revenues of €109.9m were ahead of Q2 2014 with underlying growth of 7.2%.
On June 21, 2015, Marfrig Global Foods SA announced that it had entered into a definitive agreement to sell the entire equity holding in Moy Park Holdings Europe Limited to JBS SA.
This transaction is subject to certain customary consents and approvals by the competent authorities, including antitrust agencies from Europe. The closing of the transaction is expected to occur between the third and fourth quarters of this year.
Commenting on the results, Moy Park CEO Janet McCollum said that the second quarter of 2015 has seen the business continue its solid start to the year in what is a challenging market.
“Our commitment to delivering the highest quality product offering to our customers and consumers, while maintaining our focus on controlling costs, has enabled us to report solid second quarter results.
“We have also produced another positive cash flow while continuing our programme of infrastructure investment which will facilitate our continued growth.”