Profits rise at Young’s Seafood; New owners target further growth
Young’s Seafood Ltd. achieved turnover of GBP 545.9 million (USD 659.2 million, EUR 587.9 million) for the financial year ending September 2018, which represented an increase of 4.3 percent year-on-year, with growth seen in its frozen, chilled, brand, and retailer-branded segments.
The Grimsby, United Kingdom-based company's frozen sales increase resulted from growth in its market-leading brand in the United Kingdom and export markets, as well as from a number of its own label contract wins. The increase in chilled sales reflected strong customer activity and new listings as well as market growth.
Its accounts for the year showed earnings before interest, taxes, depreciation, and amortization (EBIDTA) increasing by 16 percent to GBP 23 million (USD 27.8 million, EUR 24.8 million), while the operating profit before exceptional items and goodwill amortization reached GBP 11.5 million (USD 13.9 million, EUR 12.4 million), up from GBP 8.4 million (USD 10.1 million, EUR 9 million) for the 12 months to end September 2017.
Last month, it was announced that the CapVest Partners LLP-owned U.K. pork processor Karro Food Group had reached an agreement to acquire Young’s. The deal will create a multi-protein food group with sales of circa GBP 1.2 billion (USD 1.4 billion, EUR 1.3 billion) and employ over 5,000 people across the United Kingdom and Ireland.
Karro CEO Di Walker said the 2018 results for Young’s demonstrated the company’s continued market leadership in seafood and potential for future growth.
“With a good foundation for growth and new ownership in place, Young’s Seafood is progressing well with the first phase of transition, achieving export growth and new contract wins since the time of these accounts. As we drive forward with our plans for the group, we are very excited about creating an ambitious multi-protein food business, further developing and broadening our relationships with our key partners,” he said.