October 5, 2011

Moy Park delivers strong results but foresees challenges

Moy Park, Northern Ireland's largest food processing company, has delivered strong financial results for the year ending December 31, 2010 but sees the challenge of overcoming feed price and energy inflation ahead.

Moy Park achieved an uplift in sales revenue of 18% to GBP921.1million (US$1416million), resulting in a pre-tax profit of GBP27.8milion (US$42.7million) representing 3% of sales.

Commenting on the results, Managing Director, Nigel Dunlop, said: "Moy Park Limited has delivered a solid financial performance in 2010. We have enjoyed continued business growth and development and as part of the Marfrig Group are now Northern Ireland's largest food processing company with 10,500 employees across 13 production sites in Northern Ireland, England and Europe.

"We have continued to invest in our core business, providing fresh, high quality locally farmed poultry and convenience food products to our customers and consumers across the UK and Europe. Our acquisition of O'Kane Poultry in 2010 enhanced our 2010 results and has increased our poultry farming and processing capacity, increased our milling capability and enabled the company to enter the turkey sector for the first time."

Moy Park continues to drive a major capital investment strategy and last year reinvested GBP32million (US$49million) in developing and strengthening the business and to ensure we continue to meet the needs of our customers and consumers.

"The poultry sector has witnessed major increases in input costs over the past twelve months, representing up to GBP1 (US$1.54) per bird, due primarily to increases in feed and energy prices," said Dunlop."Agri food is playing a major part in the rebuilding of the local economy. The poultry sector is a crucial part of this, employing thousands of people, and as such it remains essential to ensure that such costs are fully recovered from the market".