Annual sales slid by almost £40m at Northern Irish meat group Dunbia in the year its founders put it up for sale.
Turnover for the year to 27 March 2016 slid 4.7% to £787.5m as deflation in livestock prices hit revenues.
Despite the sales dip, pre-tax profits increased by 9% to £7.2m and gross profit margin improved to 7.9% from 7.4% driven by “continued focus on margins and improvements in productivity”.
The accounts state: “Whilst the group and the industry as a whole have battled with fluctuating livestock prices, the group has been able to work closely with customers in retaining gross profit margin and will continue to do so.”
Dunbia shed its pork division in a sale to Cranswick in November 2016 and The Grocer understands the group remains in talks with at least one bidder over the sale of its remaining red meat business. A potential joint venture spin-off of the red meat business with 2 Sisters failed to complete earlier in 2016.
During the year staff costs rose by 5.5% as average headcount increased from 3,282 to 3,463. Payments to directors rose to £720,000 from £580,000 in the previous year.
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