Protein giant Pilgrim’s Europe posted strong increases in profitability in 2024, on the back of “operational efficiencies” following its integration of Pilgrim’s UK, Moy Park and Pilgrim’s Food Masters, its latest accounts have shown.
The first full-year results for the unified Pilgrim’s Europe structure showed an increase in profit after tax, by 21.1% to £128.4m, for the 52 weeks to 31 December.
The JBS-owned business also strengthened its profit margin, from 4.2% in 2023 to 6%. The supplier’s “strong performance was supported by investment in its brands and infrastructure throughout the year, driving efficiencies and enhancing mix while helping customers outperform sections of the market”, Pilgrim’s said.
However, revenues dipped slightly, falling by 2.9% to £4.06bn, attributed by the food giant to “challenging market conditions”.
Company president Ivan Siqueira said the results “demonstrate how integration over the past two years has strengthened Pilgrim’s Europe’s marketplace presence while cultivating a more nimble, customer-focused organisation to further scale profitable growth in 2025 and beyond”.
“We’re proud to deliver a strong performance in our first full year as Pilgrim’s Europe,” he added. “We’ve cultivated profitable growth by simplifying our structure, optimising our footprint, and investing behind our brands.
“The combination of innovation, deep customer partnerships and a growing branded offer has helped us outperform the market in several key categories.”
The business also made £109m worth of investments over the year including a £19m investment in its fresh and value-added pork division, a three-year £40m investment programme across key poultry sites, and £12m investment in its meal business.
The company introduced over 700 new products across its private-label and branded portfolio in 2024 and innovation now contributes 6% of total net sales.
It added that sustainability and animal welfare efforts have also directly supported commercial growth, something it has built on this year with its Waitrose partnerships on chicken and pork.
The business said retail demand had remained stable with poultry and chilled meals performing well, however lamb and pork categories experienced some reduced demand. Pilgrim’s attributed this to higher price points amidst ongoing cost of living pressures for consumers and National Insurance hikes for companies which have impacted sentiment and demand.
The wider UK pork and poultry industry is also facing on-farm space constraints due to industry-wide planning delays and moves to higher welfare BCC and 30kg poultry production across retailers, which is constraining plant capacity and investment, the business added.
“Thank you to all our team members for your support in continuing to drive our business forward and enhancing our position as a trusted partner to our customers and farmers whose continued support has made this possible,” said Siqueira.
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