HOOK 2 SISTERS has said a decrease in the average price per kilogram for chicken led to turnover dropping to £769m in its latest financial results, covering the year to 31 July 2021.
Sales were £26.5m lower than the same period a year earlier, although the total sales volume grew marginally.
But the firm remained profitable, posting a pre-tax profit of £254,000 – though this was down from £845,000 in the 2019/20 financial year.
In addition to lower poultry prices, the covid-19 pandemic had ‘overshadowed’ the firm’s trading year.
“The business has worked hard throughout the year to balance supply and demand, but it has been inevitable that there have been periods when this has not been aligned, either due to the closure of markets or production facilities.”
Brexit and staff retention were also highlighted as potential headwinds for the firm, a joint venture between PD Hook (Group) and 2 Sisters Food Group.
Despite these challenges, directors said that the backdrop for chicken production remained good despite “severe price pressure”.
“The general trend in demand has been strong, reflecting the ongoing trend for British chicken as a traditional healthy and versatile, low-cost protein,” the strategic report said.