OREANDA-NEWS. Moy Park Holdings (Europe) Limited ("Moy Park") is a leading and highly regarded European food company, providing fresh, high quality and locally farmed poultry and convenience food products to major retailers and foodservice customers. 

Moy Park today announces its results for the quarter ended 2 April 2016. 

 

Q1 2016

Q1 2015

Q1 2016 v. Q1 2015

Revenue

£347.5m

£353.2m

(1.6%)

Underlying Revenue [a]

£347.5m

£341.9m

+1.6%

EBITDA before exceptional items

£30.6m

£26.9m

+13.5%

Profit / (Loss) Before Taxation

£9.5m

£5.0m

+90.3%

Underlying EBITDA [b]

£30.6m

£28.2m

+8.2%

Underlying Profit Before Taxation [c]

£14.1m

£10.7m

+31.7%

Exceptional Items - Cost/(Income)

£0.0m

£0.0m

-

Net Debt

£151.2m

£152.7m

(£1.6m)

Net Debt : EBITDA [d]

+1.31 times

+1.40 times

(0.09) times

 

[a] Underlying Revenue excludes discontinued Canned Beef sales from prior year comparison

 

[b] Underlying EBITDA is before exceptional items and corporate charges

[c]  Underlying Profit Before Taxation is before exceptional items, corporate charges, bond interest and foreign exchange movement on inter-company loans

[d] Net Debt : EBITDA is calculated as net debt at the relevant period end divided by EBITDA before exceptional items for the last 12 months to that date

 Commenting on the results, Janet McCollum, Chief Executive of Moy Park, said: 

"We are pleased to announce a solid start to the year in the face of a challenging global market. The company has delivered a 32% increase in underlying profit before tax and continues to achieve volume growth.  Underpinning this progress is a continued focus on efficiency and cost control, and we are beginning to see the benefits from being part of JBS. This robust performance was delivered against market headwinds including commodity price deflation and a challenging export market. 

We continue to build our business to the highest standards of food safety and quality, and to meet and exceed the ever-evolving expectations of our customers and consumers.  These standards have been recognised across our industry most recently at the prestigious Meat & Poultry Processing Awards where we achieved the top award 'Processing Business of the Year'." 

Q1 2016 Highlights

  • Underlying sales volume growth of 2% when compared to Q1 2015 with good performance in both the UK & Ireland and Continental Europe business units.
  • Revenue decreased (1.6)% from Q1 2015 to £347.5m million. When adjusted for the discontinued Canned Beef business, underlying sales showed 1.6% growth, in spite of the headwinds of commodity price deflation and lower international sales prices.
  • Underlying EBITDA, before inclusion of corporate charges from our parent company and exceptional items, increased by 8.2% to £30.6 million in Q1 2016.
  • PBT has increased by 90% to £9.5m in Q1 2016.
  • Underlying PBT, before corporate charges, exceptional items and bond interest increased by 31.7% to £14.1 million in Q1 2016.
  • Delivered a positive cash flow of £2.8m in the quarter.
  • Net debt has reduced to £151m with a resulting leverage of 1.31 times, an improvement of 0.07 times on the year end position. 

Q1 2016

There was underlying sales volume growth in both UK & Ireland and Continental Europe during the period. Underlying revenue increased by £5.6 million to £347.5 million compared to the same period in 2015. The revenue increase was driven by continued volume growth and was achieved despite commodity input cost deflation and lower market prices on international sales of poultry dark meats and offal. 

EBITDA before corporate costs increased by £2.4m to £30.6m. The improvement in margins was the result of increased operating efficiencies across the business and our ongoing focus on cost control, which more than offset the lower prices on international sales. 

UK & Ireland

The UK & Ireland revenue of £267m is £(13)m below the prior year. When adjusted for the discontinued Canned Beef business, revenue is in line with 2015, with the underlying volume growth of 1.5% again being offset by commodity input cost deflation and lower market prices on international sales of poultry dark meats and offal. 

Continental Europe

European revenue of €105.4m is 8.3% ahead of prior year with good volume growth across our poultry and beef categories, combined with favourable product mix.

Outlook

Following a positive start to the year, we are pleased with the continued progress being made in the business. High quality standards of animal husbandry, production and processing and a determination to meet and exceed the continually changing requirements of customers and consumers remain key to our success. We continue to invest in our assets for future growth and with an experienced management team, a strong product portfolio and a robust financial position, we remain confident in the continued success and development of the business.