Young’s profits hit by inflation
Inflation took a big chunk out of the profits of Young’s Seafood last year, the company’s latest accounts show.
Turnover increased substantially during the 52 week period ended 27 March 2023, with Young’s recording £625.9m, compared with £552m for the equivalent period in 2022 (although the latter covered just 51 weeks).
Profit after tax, however, was just £4.7m against £12.4m in the 51 week period 12 months earlier. Operating profit was just over £1m lower, at £8m.
The company had to spend much more on raw materials (mainly fish) and consumables. That figure was £443.4m against £362.6m, a rise of £80.8m. The period covered was dominated by rising fish prices, especially in relation to cod, haddock and salmon.
Staff costs, however, were reduced from £90m to £87.7m during the period.
Young’s, which operates in Grimsby and Scotland, said that inflation has been impossible to avoid and has had an impact on most areas in the group.
Input materials such as raw materials, feed and transport had all seen substantial increases but the company had successfully managed to pass much of this increase onto its customers, albeit with delays in the pass-through.
The company would continue to pro-actively engage with customers to manage inflation recovery, the report said. It was also preparing for “significant growth” in the years to come.
Young’s said it is a strong and sustainable player in the seafood market, delivering a resilient performance and a pro-active management of inflation recovery in a competitive market and would continue to focus on operational improvement by incorporating best practice from the “Sofina way of working” (a reference to its Canadian owner).