Profits up for Young’s
DESPITE a tough year, which saw them lose a major salmon processing contract, Young’s operating profit rose by 6%, reaching £26.7 million for the 12 months to end September 2015, versus £25.2 million in 2014, reports www.megafishnet.com with Fishnewseu.
According to the company, its latest financial results “demonstrate good performance, strong cost control, the impact of efforts to drive efficiencies and the strength of the management team.”
The company re-launched its award winning Masterbrand during FYE15, with a multichannel advertising campaign. This resulted in significant growth of Young’s Power Brands including Gastro, which is now worth over £54 million, having grown by over 42% in the past year. The brand continues to be supported by significant media investment and Young’s Seafood Limited continues to be the clear market leader in the UK fish and seafood market.
During the year, the company was notified that a salmon processing contract was to be transferred by Sainsbury’s to Marine Harvest with effect from Quarter 1 for the Financial Year Ending September 2016. The business transfer took place after the period covered in the accounts for the Year Ending 2015 and the company has since engaged in a manufacturing footprint review, resulting in the reduction in the scale of its operations in Fraserburgh to actively manage costs.
Pete Ward, the Chief Executive of Young’s, said: “We are pleased to report EBITDA and Operating Profit growth in challenging market conditions. The results reflect Young’s Seafood Limited’s success in innovation, growing our Power Brands and managing costs. We anticipate that the retail environment will continue to be challenging and having engaged in a Strategic Review process, we are confident that our strategy will see us rebuild our top line and profit, delivering good returns for the Financial Year Ending 2016. We are driving this with new innovation, continuing to invest in our brand and cost control, through Virtual Integration with our key suppliers. Our Strategic Review has shown us is that our position as the UK’s leading fish and seafood brand means there are a number of new opportunities to explore in, for example, foodservice, along with new channels, categories and markets. Our position as the leading fish and seafood business along with industry consolidation means that, in addition to the steps we will take to achieve our strategic plan, we view value-accretive acquisitions as another potentially interesting opportunity. We continue to focus on providing a great service, to our new and existing customers, and we have a strong track record of developing close partnerships with both our customers and suppliers. We are on track with implementing our Strategic Plan, we are set to deliver good returns for the Financial Year Ending 2016, and we are optimistic for the years to come.”
Bill Showalter, CEO and CFO of Young’s Seafood International Holdings, the parent company, added: “Young’s Seafood Limited’s results for the financial year ending 2015 demonstrate strong cost control and solid underlying UK trading performance. With the strategic focus on cost management, and the scope to exploit the opportunities that the new market dynamics present, we are optimistic for the future.”