Poultry processor Avara Foods has published its annual report for the year ended 31st May 2024 after experiencing a decrease in yearly turnover.
Avara achieved a turnover of £1.3 billion, down from £1.5 billion in 2023. Gross profit reached £64.1 million, a decrease from the 2023 total of £105.69 million.
For the year, Avara’s loss stood at £49.3 million, up from its 2023 loss of £12.7 million.
The processor highlighted a period of “major business restructuring” to create a more efficient and productive supply chain.
Over 2023/24, Avara closed two processing facilities, alongside opening a dedicated added-value processing site. Across the full 12 months, Avara undertook a planned transition in operations to deliver a more efficient, streamlined supply chain capable of operating out of a smaller footprint.
Alongside the one-off costs of restructure, operating costs were slightly higher, in line with managing a significant transformation programme. Despite this level of change the financial year finished in line with forecast with an earnings before interest, taxes, depreciation and amortisation (EBITDA) loss of £25 million including £11.5 million of one-off costs, and the business moved into the new financial year with full headroom in its banking facilities and additional funds from its shareholders to underpin investment.
Andy Dawkins, CEO of Avara Foods, said: “2023/24 was planned to be a year of change, but it was necessary to position us for the future. We are already reaping the benefits in financial performance in FY25 which is running in line with expectations.
“While closing facilities and losing valued colleagues is never easy, we did this in the right way in line with our strong values. I am heartened by the opening of our new facility at Wednesbury, which has grown quickly on the back of strong customer support.
“The hard work done on streamlining the business is now bearing dividends, putting us on track in a market where welfare, affordability and availability are all key priorities as we head into a time when UK food security and production will be more important than ever.”
In its most recent For Good Annual Sustainability report, Avara confirmed a continued reduction in carbon emissions ahead of SBTI targets and improvements across the board in areas relating to safety, food quality, welfare, ethical treatment of people, and support for the communities in which it is based.
