The latest financial results for the Lion/Gem Luxembourg, associated with Young’s Seafood Limited, have been announced, with turnover coming in at GBP 135.3 million (USD 174.2 million, EUR 149.7 million) and EBITDA totaling GBP 6.7 million (USD 8.6 million, EUR 7.4 million) for the third quarter of fiscal year 2018.
These current figures contribute to a 29 percent increase in EBITDA year-on-year for the enterprise, a point of pride for Young’s Seafood, especially given the current market challenges at play, said the company’s CEO Bill Showalter.
“As the market leader, Young’s continues to deliver EBITDA growth year on year and quarter on quarter, in a challenging market. This has been driven by sales progress, underpinned by cost reduction actions. The plans we have put in place to deliver our medium term outlook are well underway and we are on track to meet our targets,” Showalter said in a press release.
Several key developments have helped the Grimsby, United Kingdom-based company edge closer to its overarching goals, Showalter noted. For instance, Young’s announced an aggressive expansion plan for the U.S. market in June of this year, vowing to double the number of products the company sells in the country and adding an additional 1,300 U.S. grocery stores to its distribution network.
Young’s originally entered the U.S. market in January via a partnership with The Fishin’ Company, selling its frozen seafood meals in 13,000 Walmart, Sam’s Club, and several other grocery chains operated by Ahold Delhaize. Its “Made In Britain” labeled products are also being sold in U.S.-based stores owned by Albertsons Companies, including 1,300 Safeway Northern California and Jewel-Osco stores – a development that unfolded in June.
“We also secured increased distribution for our Young’s Brand, along with new products and extensions to our existing lines in the USA. Driving exports is a key pillar of our strategic growth plan and our success in the U.S. market demonstrates the potential to grow sales outside of the U.K., where Young’s Seafood is the number one fish and seafood brand,” Showalter explained.
Young’s has also experienced growth in 2018 beyond the retail category, scooping up a contract with popular sandwich chain Pret a Manger in July, Showalter said. The foodservice company, which operates 530 restaurants globally, is supplying five lines of Young’s products courtesy of the contract, including: salmon for salmon sandwiches, baguettes, and protein pots, in addition to a new salad offering and seasonal special baguette.
The changes haven’t stopped there for Young’s, either.
According to a 23 August report from Campaign Live UK, Young’s has ended its 18-year contract with MediaCom, transferring its account to "behavioural planning agency" Total Media. The agency joins Young’s existing brand-development partners Quiet Storm, Activation, and Springetts, in bringing the company’s vision and products to consumers.
"It’s an extremely challenging time for brands to connect with consumers and in order to maintain our position as the UK’s leading fish and seafood business we needed to make a significant step change with our media buying,” said Yvonne Adam, marketing director of Young’s Seafood, of the shift.
"Total Media’s deep knowledge of multiple channels and its approach to audience insight proved to us that they were the right team to work with," she added.
Total Media is determined to use its insight into behavioural science and technology to help Young’s realize its brand with consumers, said Tom Laranjo, managing director of Total Media.
"Gaining new customers in a crowded market is a challenge, regardless of brand prominence. Using the latest behavioural science and technology, Total Media will help Young’s maintain its position as market leader," Laranjo said.
While all of these developments unfold for the business, enterprises around the world are vying to buy Young’s, which was put up for sale by current owners Lion Capital, Bain Capital, and HPS Investment in April 2018. Recent reports note that the bidding war is heating up, with buyers potentially shelling out as much as GBP 200 million (USD 255 million, EUR 223 million) for the frozen food manufacturer.
Among the present line-up of promising buyers are Young’s former private equity owner CapVest, Japan’s Mitsubishi Corporation, and UK Fisheries. Stamford Partners, a boutique investment house, is at the helm of the sale process. The company has been fielding a great deal of interest and inquiry from private equity and rivals within the seafood sector, it told The Telegraph.
Read more here about the bidding war for Young’s, which saw sales increase by 4.9 percent to GBP 188.7 million (USD 243.1 million, EUR 208.6 million) in the 12 months to March 2018, according to data from IRI.
