The company reported profit before tax of £13.7m for the year ended 31 May 2019, with a gross profit of £106m.
Commenting on the results, chief executive Andy Dawkins said: “Our first full year as Avara Foods was always going to be a period of significant change and upheaval, and the wider economic environment was a test of our resilience. Despite this, even in a tough trading period, there are strong indicators that we are on the right path.
“The investment in our business, the support from our customers and the improving performance trend towards the end of the period are all reasons for us to be optimistic about our future.”
£15m investment
Avara spent £15m investing in its facilities and automation to improve productivity, increase capacity and support range and volume increases across the added-value category.
This spend on the business help the company weather challenges posed by Brexit and volume increases, putting pressure on Avara to recruit, train and retain the people and skills required to meet demand for its products.
Dawkins added: “That is why our strategy is focused on operating more efficiently through investment in technology, people and skills to deliver continued growth for Avara in the UK market.
“Clearly, to support this investment strategy we need clarity in the Brexit process and now is the time to establish the priorities of a post-Brexit food landscape.”
Continued market disruption
Avara said it expected continued market disruption and cost pressure from discount retailers during the 2019/20 period, while expectations from consumers for transparency, welfare and provenance in the supply chain would put pressure on the business to “walk their own talk”.
“We are focused on what we need to be doing now to be competitive and fit for the future,” Dawkins concluded.
Meanwhile, dairy ingredients firm Meadow Foods has posted significant profit and sales growth in the year to 31 March 2019 amid continued capital expenditure, vowing to invest a further £8m by April this year.
