Accounts filed this week revealed turnover for the company, owned by 2 Sisters Food Group founder Ranjit Boparan, grew 53% to £603.3m in the 52 weeks to 31 December 2017. This was due to the acquisition of both Bernard Matthews and Grove Turkeys last year.
However, the cost of sales, as well as administrative expenses that were double on the previous year, dragged operating profit down by 15% to £41.7m. Amber Rei said this was slightly offset by last year’s acquisitions, as well as a £4m profit from the disposal of surplus assets.
Assets sold
The company also sold its poultry growing farms assets and breeding, hatching and rearing assets to Hook 2 Sisters and PD Hook respectively for £31.9m.
Commenting on the results, a statement signed off by the board said: “The group maintains a positive outlook underpinned by continued growth in the poultry market.
“The group's financial situation remains very strong with significant cash balances and a low level of debt relative to profit.”
The only risk that the company foresaw would be if the current trend of increasing demand for poultry was to reverse, or if demand for growing space and feed were reduced.
Customer demand
“This is considered as minimal, as currently there is an overall insufficient supply of UK grown poultry to meet consumer demands,” the statement continued.
Amber Rei also said it planned to diversify the business in the future, but did not go into detail as what this might entail.
Meanwhile, in August, Bernard Matthews created 400 new jobs at its Suffolk site following the securing of new retail contracts to provide cooked chicken.
The business recruited for non-seasonal roles, which range from factory management to supervisors, skilled operatives and process workers.