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 is today pleased to announce its results for the quarter ended 2 July 2016.

 

 

Q2 2016

Q2 2015

Q2 2016 v. Q2 2015

Revenue

?364.7m

?360.3m

+1.2%

Underlying Revenue [a]

?364.7m

?349.8m

+4.3%

EBITDA before exceptional items

?33.5m

?29.5m

+13.4%

Profit Before Taxation

?11.6m

?5.8m

+99.4%

Underlying EBITDA [b]

?33.5m

?31.2m

+7.3%

Underlying Profit Before Taxation [c]

?16.8m

?12.4m

+35.5%

Exceptional Items

?0.0m

?0.0m

-

Net Debt

?138.4m

?213.7m

(?75.3m)

Net Debt : EBITDA [d]

+1.16 times

+1.91 times

(0.75) 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:

"The second quarter of 2016 has seen Moy Park continue its solid start to the year, delivering revenue growth and improving underlying profit before tax by 35%. This positive performance is set against the background of a particularly challenging market and our progress continues to be built on a platform of strong customer relationships, innovation, improved efficiency and cost control.

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.  This focus has resulted in yet another period of pleasing continued growth.  Our high standards have been recognised across our industry most recently at the Royal Society for the Prevention of Accidents Awards, where we achieved the prestigious Food & Drink Sector Award for Most Outstanding Performance in Health & Safety for the second year in succession. This builds on our earlier achievement of 'Processing Business of the Year' at the 2016 Meat & Poultry Processing Awards."

Q2 2016 Highlights

·    Underlying sales volume growth of 5% when compared to Q2 2015.

·    Revenue increased 1.2% from Q2 2015 to ?364.7 million. When adjusted for the discontinued Canned Beef business, underlying sales showed 4.3% growth.

·    Underlying EBITDA, before inclusion of corporate charges from our parent company and exceptional items, increased by 7.3% to ?33.5 million in Q2 2016.

·    Profit before Taxation (PBT) has increased by 99.4% to ?11.6m in Q2 2016 driven by EBITDA growth and lower corporate charges and depreciation.

·    Underlying PBT, before corporate charges, exceptional items and bond interest increased by 35.5% to ?16.8 million in Q2 2016.

·    Delivered a positive free cash flow of ?12.8m in the quarter.

·    Net debt has reduced to ?138m with a resulting leverage of 1.16 times, an improvement of 0.22 times on the year end position.

Q2 2016

There was strong underlying sales volume growth in the period driven by activity in UK & Ireland. Underlying revenue increased by ?14.9 million to ?364.7 million compared to the same period in 2015. The revenue increase was driven by continued particularly robust 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 ?2.3m to ?33.5m. The improvement was the result of volume growth, 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 ?276m is ?(5)m below the prior year. When adjusted for the discontinued Canned Beef business, underlying revenue shows 2.1% growth on 2015, with the strong underlying volume growth of 7.3% 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 €113.1m is 3.1% ahead of prior year driven by favourable product mix, with volume in line with prior year.