Pilgrim’s UK pushes for recovery but remains at a loss

Major pork processor Pilgrim’s UK reported an operating loss of £2.6m in the financial year to 25 December 2022.

Despite still being in the red, this is a vast improvement on the previous financial year, when the company reported an operating loss of £16m.

Pilgrim’s UK accounts show it increased its revenue by 10% to £1.17bn. However, costs of sales also increased during the year and totaled £1.06bn.

See also: Pilgrims pig site closure puts more than 500 jobs at risk

The processor invested more than £10m in the existing business during the financial year, including £5m at its site at Kings Lynn, Norfolk, and £1.8m at its Bodmin, Cornwall, site.

However, the company also announced the closure of processing sites at Bury St Edmunds, Suffolk, and Coalville, Leicestershire in 2022, and earlier this year announced plans to close its site at Ashton-under-Lyne, Manchester.

The UK pig sector has faced a particularly challenging two years, with high costs and inflation leaving many producers at a loss.

Producers have only recently been able to start recouping some of these losses, as pig prices surpassed costs of production earlier in 2023.

Pilgrim’s UK president Ivan Siqueira said: “Market conditions in the UK remain extremely challenging, but we’ve taken considerable steps to ensure that our business is well-placed to not only meet these challenges, but continue to be the best and most sustainable food business in the UK.

“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.”