Faccenda Foods, one of the UK’s leading food companies, has filed annual results for the 2016 financial year that reflect a continuation of the previous year’s tough trading environment. The top line declined, from £526 million to £523 million, and operating profit reflected continued price deflation, at £7.7 million.
Despite the challenging market Faccenda said it had continued to invest throughout its supply chain, including new fresh despatch facilities in Brackley, a programme of biomass fuelled heating across its farming estate and continued investment in food safety, with a particular focus on tackling campylobacter.
Reflecting on the results, Faccenda Foods’ managing director Andy Dawkins said: “I don’t think it’s been an easy year for anyone in the industry. Export and wholesale prices are at historic lows, the market is as competitive as it has ever been, and these, combined with higher feed and fuel prices due to currency fluctuations, have unsurprisingly put pressure on our margins.”
However, Dawkins was clear that despite the challenging competitive environment Faccenda had continued to invest strongly in its food businesses. “Competing in this market requires investment for the long term so that your supply chain is efficient, sustainable and fit for the future. This has been our approach when making investment decisions.”
He concluded: “It’s been a tough year but we’ve held up well. Our balance sheet remains strong and we are well positioned in growth markets. Regardless of the prevailing economic conditions some simple rules hold true: focus on your people, focus on your customers and focus on the long term. We’ll continue to do this and in the year ahead.”