Young's Seafood Q3 results: Double-digit turnover boost with slight squeeze on margins
Turnover boost: Young's Seafood.
By Grimsby Telegraph | Posted: 17 Aug 2017
GRIMSBY’S largest private employer, Young’s Seafood, has reported a double digit increase in turnover in its latest quarterly results.
The Ross House team has revealed revenues of £131.9 million for the third segment of its financial year in the 13 weeks to July 1, up 11.6 per cent year on year.
It is also an increase on second quarter sales of £131.6 million.
Earnings, however, were down £100,000, from £5.3 million to £5.2 million, underlining a slight squeeze on costs which is being felt across the food industry.
Bill Showalter, pictured, chief executive of Young’s Seafood Ltd, said: “Top line progression including contract wins, along with the actions we have taken to reduce costs, have further reinforced progress towards our medium term profitability target. This was another quarter of year on year sales growth across both frozen and chilled temperature regimes.
“We continued to drive our cost reduction programmes and the success of this approach is reflected in the results. We continue to be on track to deliver our medium term profitability target, having continued to deliver a solid EBITDA performance for the quarter.”
First quarter results of £128.8 million in revenue and £3 million in earnings have been capitalised on, with the latest quarter also no including a seasonal peak of either Christmas or Easter.
There was however a contract success of a significant level, understood to be salmon supply for sandwich and coffee chain Pret a Manger.
Mr Showalter said: “A new business win has been achieved in one of our targeted growth channels, foodservice, which includes a foodservice contract with a major fast food retail company. Our clear market leadership continues, bolstered by these wins, the recent re-launch of our breaded range and new consumer communications activity.”
Young’s employs nearly 2,000 people in Grimsby, with the iconic Dock Tower an integral part of the masterbrand used across all products, from Gastro to Chip Shop ranges.
Q3 results take turnover to £392.3 million for the year, with earnings of £13.5 million.
The final quarter takes in the height of the summer through to October 1, with asales of nearly £200 million required to equal last year’s annual turnover of £587.9 million.
However, 2017 has seen the loss of a Sainsbury’s contract, understood to be worth £100 million kick in, which if taken out, underlines the growth potential aside from the high profile loss that led to major cuts in the Scottish operations, with consolidation and addition of more lines in Grimsby production sites.