Pilgrim’s Europe has successfully returned to profitability, matching pre-Covid performance levels.
- The integration of Pilgrim’s UK, Moy Park, and Food Masters has led to a significant increase in profits.
- Net sales have risen markedly, underpinned by easing inflation and increased demand for meat products.
- Efficient operations and a customer-centric approach have been pivotal in achieving financial success.
- The company’s branded European portfolio has recorded substantial growth in the past year.
In an impressive financial turnaround, Pilgrim’s Europe has returned to profitable growth, echoing its performance levels before the Covid-19 pandemic. This growth is evident in the group’s latest financial results, which mark the first since the merging of Pilgrim’s UK, Moy Park, and Pilgrim’s Food Masters. The group announced a substantial leap in profits after tax, climbing to £106 million, up from just £27 million in 2022. Additionally, there has been a notable 5.5% increase in combined sales, reaching £4.2 billion for the complete 2023 financial year.
The improvement in financial performance can be attributed to several key factors. Firstly, the easing of inflationary pressures in both the UK and Europe has played a crucial role. Furthermore, there has been an observable wage growth, coupled with a shift in consumer preferences towards chicken, pork sausages, and lamb over other food categories—these trends have bolstered the group’s sales and profitability.
The first half of 2024 has continued this positive trajectory, with profits after tax amounting to £44 million, representing a rise of £17 million when compared to the same period in the previous year. This increase, as reported by the group, has been largely supported by an improvement in consumer sentiment, which has fuelled further sales increases.
Pilgrim’s branded European portfolio has demonstrated strong performance, contributing significantly to the overall financial success. The company’s net sales saw an impressive growth of over 10% in 2023 compared to the prior year. Specifically, the Richmond and Rollover brands have shown remarkable growth rates, with sales climbing by over 13% and 31%, respectively, during the period. Branded growth has accelerated by an additional 6% in the first half of 2024, with the Fridge Raiders and Richmond brands outpacing category averages.
Ivan Siqueira, the President of Pilgrim’s Europe, has expressed confidence in the company’s strategic moves. He cited operational excellence and a focus on customer satisfaction as decisive factors in reinstating profitable growth. The company remains committed to enhancing its speed to market and simplifying operations to deliver exceptional customer service, aiming for sustainable growth alongside key partners.
Pilgrim’s Europe demonstrates a promising resurgence in profitability through strategic operations and market adaptability.
