Pilgrim’s Europe has demonstrated a strong return to profit growth, achieving pre-Covid financial levels.
- The company reported a substantial increase in profits after tax, rising to £106m from £27m in 2022.
- Combined sales for Pilgrim’s Europe grew by 5.5%, reaching £4.2bn for the full year 2023.
- Contributing factors include easing inflation, rising wages, and a consumer shift towards chicken, pork sausage, and lamb.
- Richmond and Rollover brands significantly outperformed, with sales increasing by over 13% and 31% respectively.
In its latest financial disclosures, Pilgrim’s Europe indicated a notable return to profitability for the full year, suggesting the company is getting ‘back on track’ towards pre-Covid financial performance. The company’s profits after tax soared to £106 million from £27 million in 2022, reflecting a robust improvement in their financial health.
The overall sales figures for Pilgrim’s Europe also displayed positive momentum, rising by 5.5% to settle at £4.2 billion for the complete 2023 year. This growth was supported by favourable economic conditions such as easing inflation rates across the UK and Europe, coupled with incremental wage growth. These factors encouraged consumers to opt for more affordable protein options like chicken, pork sausage, and lamb, thereby boosting sales.
In the first half of 2024, Pilgrim’s Europe reported a profit after tax of £44 million, marking a £17 million increase compared to the corresponding period the previous year. This increase was largely attributed to the enhancement in consumer sentiment, which has been a pivotal driver for the company’s financial gains.
The company’s branded European portfolio, worth £400 million, has been performing particularly well. Net sales from this segment grew by over 10% in 2023 compared to the prior year. Notably, the Richmond and Rollover brands saw remarkable sales increases, at over 13% and 31% respectively, within the reported period. This growth continued into the first half of 2024, with Fridge Raiders and Richmond exceeding average category growth rates.
Pilgrim’s Europe’s president, Ivan Siqueira, highlighted the strategic measures implemented following the merger of Pilgrim’s UK, Moy Park, and Pilgrim’s Food Masters. Siqueira remarked on the importance of driving operational excellence, becoming customer-focused, and seeking out opportunities to improve speed to market, simplify operations, and deliver exceptional customer service.
Pilgrim’s Europe’s strategic initiatives and favourable economic conditions have successfully restored the company to profitable growth.
