Seafood giant's financials confirm it is back as a half a billion business
By Grimsby Telegraph | Posted: 2 Jul 2018
Young's Seafood's final accounts for 2016/2017 have been released, with its re-emergence as a half-a-billion-pound business confirmed.
As reported in January, the seafood giant hit £523.3 million for the 12 months to September last year, up on the £496.5 million it had dropped to following the loss of a major Sainsbury’s contract.
It represented turnover growth of 5.4 per cent, adjusted from 5.7 per cent with EBITDA said to be in line with the strategy, at £19.8 million. Operating profit was £8.4 million.
Growth was driven by contract wins in both frozen and chilled temperature regimes, and success in own-label as well as with the company’s market leading Young’s brand, Ross House bosses said.
Bill Showalter, pictured, chief executive, said: “Our brand remains the clear number one in both chilled and frozen market products, across multiple channels and temperature formats. Contract wins and the growth of our market leading brand contributed to our annual turnover growth. During the financial year ending 2017, we tackled exceptional, one off Brexit-driven foreign exchange and raw material inflation, working closely with our retailer partners, and took steps to address cost management requirements at our Pinneys site in Scotland.
“In addition to share growth, we made positive progress in the foodservice channel, following our contract win with a major fast food retail company. Our exports programme is also delivering with accelerated export orders to the USA. Bringing restaurant quality fish into new categories, we closed the year as the clear number one brand in frozen seafood.”
The company has recently announced an expansion of that introduction in January, adding Safeway Northern California and Jewel-Osco. This will add an additional 1,300 points of distribution the brand’s fish dishes in some of the premier food markets in the US.
“Driving exports is a key pillar of Young’s Seafood’s strategic growth plan and the success in the US market demonstrates the strength and popularity of the Young’s brand and the scope for further growth in export markets,” Mr Showalter added.
Recent weeks have seen a £30 million Asda contract lost, but Marks and Spencer work taken on from Two Sisters’ beleaguered Five Star Fish factory in Grimsby. Both are understood to come into the 2018/2019 financial year, not the current one, with second quarter results for 2017/2018 showing 3.6 per cent growth on revenues, and 3.7 per cent on earnings.