Pilgrim’s Europe has significantly improved its financial performance, reporting a return to profitable growth.
- The company’s after-tax profits rose to £106m in 2023, up from £27m the previous year.
- Combined sales for the year were up by 5.5%, reaching £4.2bn.
- The growth was driven by a combination of easing inflation and shifting consumer preferences towards poultry and pork products.
- Branded sales within its £400m European portfolio showed substantial increases, particularly for Richmond and Rollover brands.
Pilgrim’s Europe has marked a significant turnaround in its financial results, reporting a return to profitable growth for the fiscal year 2023, thereby aligning with pre-pandemic levels. The restructuring of Pilgrim’s UK, Moy Park and Pilgrim’s Food Masters into a single entity has played a pivotal role in this resurgence, resulting in after-tax profits reaching £106 million, a significant increase from £27 million in the previous year.
The company’s combined sales grew by 5.5% to a total of £4.2 billion in 2023. This growth is attributed to easing inflationary pressures in both the UK and European markets, alongside wage growth and a notable shift in consumer spending habits towards chicken, pork sausage, and lamb products.
For the first half of 2024, Pilgrim’s Europe reported after-tax profits of £44 million, reflecting an increase of £17 million compared to the same period in the previous year. This improvement was largely driven by improved consumer sentiment, highlighting increased confidence in the economic outlook.
Ivan Siqueira, President of Pilgrim’s Europe, stated that the consolidation of operations has enhanced their ability to focus on operational excellence and customer-centric strategies. He emphasised their commitment to accelerating market delivery, simplifying operations, and providing outstanding customer service as key pillars for achieving sustainable growth.
The company’s branded European portfolio, valued at £400 million, has performed exceptionally well, with net sales growing over 10% in 2023 compared to 2022. Notably, Richmond and Rollover brands saw growth of over 13% and 31% respectively, contributing to an overall 6% rise in branded sales during the first half of 2024. This robust performance places them ahead of category averages, demonstrating consumer preference for their product offerings.
In conclusion, Pilgrim’s Europe demonstrates a successful resurgence through strategic consolidation and market-focused growth initiatives.
