Avondale Foods warns against currency fluctuations

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Avondale posted turnover growth in 2018 however pre-tax profits were down

Fresh foods provider Avondale Foods has reported a record turnover for the past year, but has warned that fluctuations between euro and sterling could cause issues in the future.

The Lurgan-based fresh packaged food supplier posted a £51.5m turnover for the 12 months to 31 March 2018, up from £50.7m in the previous year. However, its pre-tax profits dropped from £4.5m in 2017 to £2.6m in 2018. The business also increased its production staff from 365 in 2017 to 406 last year.

The company identified several areas that could be seen as risks in the coming year. It warned that there would be pressure to reduce or maintain existing prices and margins by customers; higher operating costs; issues maintaining supply of the highest-quality ingredients during seasonal changes and varying climatic conditions; and currency fluctuations between sterling and euro.

In its company report, the business stated: “This financial year has seen the continuation of a significant investment regime in the company, increasing capacity and making ready for new product opportunities in line with the company’s strategic goals.”

Avondale Foods is run by the Geddis family and supplies fresh produce to most major retailers in the UK and the Republic of Ireland. In July 2018, the business secured a deal with retailer Asda to supply 20 lines of own-label salads.