Pilgrim’s Europe, which includes leading high welfare pig producer and processor Pilgrim’s UK, has announced a significant increase in revenue and profits for 2023 and the first half of 2024.
The company has published its first accounts under the Pilgrim’s Europe structure, which also includes poultry giant Moy Park, the number one UK and leading European organic and free-range poultry producer and Pilgrim’s Food Masters, described as ‘the UK’s top prepared foods business’.
The accounts show combined 2023 financial year revenues increased by 5.5% to £4.2 billion, with profits after tax almost quadrupling to £106m, up from £27m in 2022, as the company gets back on track to pre-covid levels. Pilgrim’s Europe said the FY23 results were supported by easing inflation in the UK and Europe and wage growth, while shoppers increasingly traded into chicken, pork sausage and lamb relative to other categories.
The upward trajectory continued in the first half of 2024, with profits after tax of £44m, an increase of £17m on the same period last year as consumer sentiment continues to improve.
The Pilgrim’s UK pork business posted a profit of £39.5m for FY23, continuing the turnaround for the business after several years of losses. It has undergone significant changes over the past year or so, as it looked to turn performance around on the pig side, in particular.
The company said that, in addition to the improving external environment, the combined performance demonstrated the ongoing positive impact of the strategic measures implemented by the Pilgrim’s Europe executive leadership to drive greater collaboration, efficiency and growth across the businesses.
Back office consolidation, coupled with ‘footprint optimisation’ and a £60m strategic investment programme focused on the company’s larger facilities over 2023, with benefits also being seen into 2024. The investment includes £12m to consolidate and upgrade its meals facilities at Windmill Lane and Attleborough with a focus on mix optimisation and meeting growing consumer convenience demand.
In line with Pilgrim’s global diversification strategy into branded and value added items, the £400m branded European portfolio continues to perform particularly well. Net sales grew by over 10% in 2023 compared to the full year 2022. Richmond and Rollover brand sales increased over 13% and 31% in the period with branded growth rising a further 6% in H1 2024.
Customer focused
Ivan Siqueira, President of Pilgrim’s Europe, said: “As Pilgrim’s Europe, we have come together to form the largest food business in the UK, and one of the leading integrated food businesses in Europe offering unrivalled capabilities, products, service and innovation to our customers. We are proud to provide local security of supply and high-quality food choices enjoyed by millions across the UK and Europe each year.
“Since bringing together Pilgrim’s UK, Moy Park and Pilgrim’s Food Masters under the Pilgrim’s Europe structure we have taken steps to drive operational excellence to become a more customer-focused, efficient organization.
These moves have reinforced our ability to return to profitable growth in partnership with key customers. We thank all our customers, team members, farmers and partners for their support during the transition period and as we continue to identify ways to increase our speed to market, further simplify our operations and deliver best-in-class customer service and sustainable growth.”
Pilgrim’s Europe operates more than 40 sites including well-invested food production facilities, across the UK, Ireland, France and Netherlands. It is home to around 20,000 team members, working with thousands of farmers, suppliers, food service and retail partners.