Food group's annual turnover tops £1.5bn
Turnover passed £1.5 billion for Avara Foods in its latest financial year.
The poultry group was formed in 2018 as a joint venture between Faccenda Foods and Cargill's UK fresh chicken business.
It has factories at Brierley Hill; Hadley, Telford and Wolverhampton.
Avara supplies chicken, turkey and duck to supermarkets and restaurants across the UK.
The group's turnover was £1.51bn for the year to the end of May 2023, up from £1.26bn in 2021-2022, and pre-tax losses were cut from £21.3 million to £12.2m.
The financial year saw Avara face cost increases especially in feedstuffs, fuel and utilities.
The impact of inflation on the cost of living combined with rapidly rising interest rates squeezed consumer spending, with demand falling from the peaks record during the Covid pandemic.
During the year the business started a restructuring which is due to complete in 2023-2024
Andy Dawkins, Avara chief executive, said: "Given the anticipated prevailing economic and market conditions, financial performance for the period is in line with expectations. Avara's higher turnover has arisen from the inflationary pressure that has been well documented over the period, but this significant rise does not fully offset the total increase in production costs.
"We have worked hard with our customers to navigate the balance of covering costs while maintaining an affordable product for consumers.
"In the face of almost unprecedented inflation, it is perhaps unsurprising that not all costs have been recouped. Looking ahead our focus is in three areas: ensuring that our business completes its streamlining and optimisation plan to provide customers with great quality and value, while mitigating the impact of inflation; investing in growth in our successful added value product ranges with our partner customers, and meeting our commitments to be a responsible business, helping those same customers fulfil our shared climate goals."
