Pilgrim’s Europe returns to profitable growth in first report under new structure
Together Pilgrim’s Europe represents the UK’s largest provider of higher welfare pork, the number one UK and leading European organic and free-range poultry producer and the UK’s top prepared foods business.
The accounts are the first to be published under the Pilgrim’s Europe structure and show combined FY23 revenues increasing by 5.5% to £4.2 billion and profits after taxation increasing to £106m up from £27m in 2022 as the company gets back on track to pre-Covid levels.
The FY23 results were supported by easing inflation in the UK and Europe and wage growth, while shoppers increasingly traded into chicken, pork sausage and lamb relative to other categories.
In the first half of 2024, the company continued on this trajectory with profits after taxation of £44m, an increase of £17m compared to the same period last year as consumer sentiment continues to improve.
In addition to the improving external environment, the combined performance demonstrates the ongoing positive impact of the strategic measures implemented by the Pilgrim’s Europe Executive Leadership to drive greater collaboration, efficiency and growth across the businesses.
Back office consolidation, coupled with footprint optimisation and a £60m strategic investment programme focused on the company’s larger facilities over 2023 and YTD 2024 are also realising benefits. The investment includes £12m to consolidate and upgrade its Meals facilities at Windmill Lane and Attleborough with a focus on mix optimisation and meeting growing consumer convenience demand.
In line with Pilgrim’s global diversification strategy into branded and value added items, the £400m branded European portfolio continues to perform particularly well. Net sales grew over 10% in 2023 compared to the full year 2022. Richmond and Rollover brand sales increased over 13% and 31% in the period with branded growth rising a further 6% in H1 2024 as Fridge Raiders and Richmond grew faster than category averages.
Ivan Siqueira, President of Pilgrim’s Europe, said: "As Pilgrim’s Europe we have come together to form the largest food business in the UK, and one of the leading integrated food businesses in Europe offering unrivalled capabilities, products, service and innovation to our customers. We are proud to provide local security of supply and high-quality food choices enjoyed by millions across the UK and Europe each year.
"Since bringing together Pilgrim’s UK, Moy Park and Pilgrim’s Food Masters under the Pilgrim’s Europe structure we have taken steps to drive operational excellence to become a more customer-focused, efficient organization. These moves have reinforced our ability to return to profitable growth in partnership with key customers. We thank all our customers, team members, farmers and partners for their support during the transition period and as we continue to identify ways to increase our speed to market, further simplify our operations and deliver best-in-class customer service and sustainable growth".
Pilgrim’s Europe operates more than 40 sites including well-invested food production facilities, across the UK, Ireland, France and Netherlands. It is home to around 20,000 team members, working with thousands of farmers, suppliers, food service and retail partners.
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