Pilgrim’s Europe emerges from financial challenges, achieving renewed profitability.
- The group’s profits soared to £106 million, a significant rise from the previous year’s £27 million.
- Sales growth was bolstered by easing inflation and enhanced wage growth within the UK and Europe.
- A strategic focus on chicken, pork sausage, and lamb boosted consumer interest and sales.
- The company’s branded European portfolio significantly enhanced market presence with impressive sales performance.
Pilgrim’s Europe has successfully navigated past financial difficulties, achieving profitable growth for the first time since the COVID-19 pandemic. The firm’s reorganization, combining Pilgrim’s UK, Moy Park, and Pilgrim’s Food Masters, has proven effective, as reflected in the significant increase in profits.
In the full year of 2023, Pilgrim’s Europe’s after-tax profits escalated to £106 million, up from £27 million in 2022. This substantial rise in profitability is attributed to easing inflation rates across the UK and Europe, alongside noticeable increases in wage levels. As a result, consumers have shown a marked interest in trading into meat categories such as chicken, pork sausage, and lamb, further bolstering sales.
For the first half of 2024, Pilgrim’s Europe reported an after-tax profit of £44 million, which was £17 million more than the same timeframe the previous year. This improvement is largely due to enhanced consumer sentiment and economic conditions.
Moreover, the company’s branded European portfolio has demonstrated strong performance, with net sales increasing by over 10% in 2023 compared to 2022. Notably, the Richmond and Rollover brands saw respective sales increases of over 13% and 31%. In the first half of 2024, branded growth continued to surge by an additional 6%, outpacing category averages, especially with Fridge Raiders and Richmond.
Ivan Siqueira, President of Pilgrim’s Europe, highlighted the strategic benefits of consolidating the companies under one structure, which has led to improved operational excellence and customer focus. Siqueira stated, “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.”
Pilgrim’s Europe’s strategic merger and focus on operational efficiency have effectively restored its profitability and market strength.
