Poultry specialist Moy Park has suffered a sharp dip in second-quarter pre-tax profit despite a small uplift in revenue as it prepares for life under new ownership.
Pre-tax profit plunged 29.8% from £8.3m to £5.8m in the 13 weeks ended 27 June on revenue up 1.1% from £356.4m to £360.3m.
Parent company Marfrig, agreed on 21 June to sell Moy Park to Brazil-based JBS, but Janet McCollum, Moy Park’s, chief executive, said: “Our day-to-day focus remains very much business as usual and we will continue to deliver on our plans for growth.”
The deal is expected to complete in third or fourth quarter.
Revenue growth was driven by good volume uplifts in both the UK & Ireland and continental Europe, 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.
UK & Ireland revenue of £281.2m was ahead of Q2 2014 with underlying growth of 3.1%, driven by good volume growth.
McCollum said the second quarter of 2015 had seen the company continue its “solid” start to the year in what was 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,” she said.
“We have also produced another positive cash flow while continuing our programme of infrastructure investment which will facilitate our continued growth.”