UK: Bernard Matthews "cautious" after return to profit
- Returns to FY PBT
- "Cautious" on 2012
Bernard Matthews eyes greater turkey sales
Bernard Matthews has said it is "cautious" on the outlook for the coming 12 months, despite returning to profit in its last financial year.
The company said pre-tax profit in the 12 months to 1 July rose to GBP2m (US$3.2m). In the previous reporting period, the 18 months to 3 July 2011, the company booked a pre-tax loss of GBP28.8m, after exceptional charges of GBP17.5m. In 2011, Bernard Matthews announced it would change the date of its financial year, meaning that this year and last year are not comparable trading periods.
However, the company said it was "encouraged" by the result but remained cautious on the outlook for the coming year due to rising feed costs and poor consumer sentiment.
Bernard Matthews chief executive Noel Bartram added the company aims to grow turkey consumption in the UK, where total turkey sales were up 4.4%.
"We remain focused on our strategic objective of doubling turkey consumption in the UK by 2020 and are encouraged by the 4.4% growth over the last year. I believe this to be a reflection of our continued efforts to promote turkey as a healthy and affordable meat."
Bernard Matthews Holdings Ltd
("Bernard Matthews" or the "Group")
Results for the 12 months ended 1 July 2012
In 2011, the Board decided to change the financial year end of the Group, due to the highly seasonal nature of the business. Moving the year end away from its key season to the end of June enables the Group to plan and budget more effectively having the benefit of the knowledge of the most recent Christmas performance.
In light of this change, the results for the year ended 1 July 2012 are not directly comparable with the previously reported 18 month period ended 3 July 2011.
- Group sales from continuing operations were £341.4 million (18 months to 3 July 2011: £470.8 million)
- Operating profit from continuing operations before exceptional items of £5.3 million (18 months to 3 July 2011: £6.6 million loss)
- Profit before tax for the year was £2.0 million after exceptional charges of £nil (18 months to 3 July 2011: £28.8million loss after exceptional charges of £17.5million)
- Turkey consumption has increased 4.4% in the UK (Source: DEFRA, ONS)
- Successfully renewed UK banking facilities to December 2015
- Solid start to the new financial year, but outlook remains cautious in a testing economic environment.
Trading conditions continue to be challenging with high levels of commodity inflation, particularly in respect of feed prices, and continued weak consumer spending
Bernard Matthews' Group Chief Executive Noel Bartram commented: "Whilst performance in the last financial year has been encouraging, there is still significant progress to be made. We have continued to incur unprecedented feed cost increases and do not envisage such increases abating over the coming year. With consumer spending and the wider economy remaining weak, we are cautious on our outlook for the next 12 months.
"Nonetheless, we remain focused on our strategic objective of doubling turkey consumption in the UK by 2020 and are encouraged by the 4.4% growth over the last year. I believe this to be a reflection of our continued efforts to promote turkey as a healthy and affordable meat."
Original source: Bernard Matthews Holdings Ltd
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