GLENRATH FARMS has recorded a 17.3% drop in profits before tax in its latest financial results, covering the year to 31 May 2019.
The Scottish egg giant posted sales of £53m, broadly the same as the previous year, and a £4.6m pre-tax profit, down from £5.5m the year before.
Chairman Sir John Campbell said he was pleased with the company’s performance, given the climate in which the business had operated.
“My long-predicted downturn for the industry is firmly with us and, given the challenges we are facing with the external factors such as Brexit and uncertainties caused by worldwide trade disputes, I am pleased with the result,” Sir John said.
The firm’s previous financial results revealed that Glenrath’s programme of replacing enriched colony bird places with barn was costing £25/bird.
The latest results explain that conversion is continuing apace, with colony now accounting for just 25% of the firm’s supermarket sales.
“With demand for colony eggs continuing to reduce, we have accelerated our conversion programme whereby the former colony production facilities are being converted to barn production in our large, modern poultry houses, despite the fact that some supermarkets have discontinued selling barn eggs,” the results say.
“We are of the view that our principal customers will continue to operate within this sector of the market.”
Glenrath says it will also expand its free-range egg production and facilities.
And its egg processing facility was “fully operational and running smoothly”.