Poultry supplier Faccenda has seen profits rocket by 46% after increasing volume sales, adding value to existing products and benefitting from lower interest payments.
Pre-tax profits leapt to £5m in the year to 27 April 2013 on turnover up 3.9%, to £365.2m, it said yesterday.
During the year, Faccenda grew volume sales with existing customers in most categories, with the exception of retail rotisserie sales, which suffered as a result of the introduction of VAT in autumn 2012, it said.
“We enjoyed volume growth via existing and new products and added value through an improved product mix while keeping good control over our operating costs and performance,” said MD Andy Dawkins.
The group made significantly lower interest payments in the 2012/2013 financial year after restructuring its debt finance at the start of the year.
Turnover was boosted by commodity-led inflation, growth from existing customers and NPD.
“By working closely with our customers, delivering service excellence and significantly enhancing our product offer, we have looked after the consumer and weathered the commodity storm well, while generating the profitability essential for continued long-term investment,” Dawkins added.
Customer relationships had strengthened “in the wake of challenges created by media analysis of meat supply chains further supporting the company’s position on quality and provenance”, the company added.
The results of Cranberry Foods, the turkey business Faccenda acquired in 2012, have not yet been integrated into Faccenda’s results, but Dawkins claimed it “continues to deliver strong results”.
Faccenda is investing in a new processing facility at its Telford site, following “significant” investment at its factory operations at Brackley and its acquisition of Cranberry.
“We are confident that we have the right strategy and people to build on our strong foundations and produce further improvements in year ahead,” Dawkins said.
Faccenda counts Asda as one of its biggest customers and in September last year started supplying a seven-strong range of ‘roast-in-the-bag’ flavoured whole chickens to the retailer under its Butcher’s Selection label.
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