Pilgrim’s UK, one of the UK’s leading food businesses, has seen operating losses fall from £16m to £2.6m after spearheading its growth plan.
The pork processor said that its business recovery and growth plan was 'progressing well' after recording the reduction in operating losses.
However, Pilgrim’s UK president Ivan Siqueira said that market conditions in the UK 'remain extremely challenging'.
The firm has today (2 October) published its annual report and accounts for the year to 25 December 2022.
A year before, the food and farming recorded an operating loss of £16m.
The company's performance followed challenges impacting the UK pork sector over the course of 2022, with the UK breeding herd having contracted by 20%.
Loss-making producers also left the industry en masse due to a sustained period of high production costs and lower pig prices.
At the same time, a reliance in the UK on cheaper imports and post-pandemic recovery challenges within certain markets negatively impacted UK production.
Despite the challenging market conditions, Pilgrim’s UK has posted a total revenue increase of 11% in 2022 to £1.2 billion, while slashing operating losses to £2.6m.
In the last twelve months, the firm has also invested £1.8m in its Bodmin site and £5m investment in its Kings Lynn site.
However, during the period, Pilgrim’s UK closed its Coalville and Bury St Edmunds sites in early 2023, and more recently the closure of its Ashton facility.
Pilgrim’s UK president, Ivan Siqueira said the processor had taken 'considerable steps' to ensure that the business was well-placed to meet challenges.
He said: “While our performance shows that we are making good progress in right-sizing our business, optimising our operational footprint and supporting our farmers, we know that there is more work to do.
“We will therefore continue to identify ways to become ever more effective and efficient, while delivering the highest quality and most innovative food to our customers.”