Avara Foods has recorded a pre-tax loss of £55 million it its latest financial results, covering the year ending 31 May 2024, following a period of restructuring.
During 2023/24, Avara closed two processing facilities, alongside opening an added value processing site. Sales during the year declined from £1.5 bn in 2023 to £1.3bn in 2024. Avara said this was a planned transition in operations to deliver a more efficient, streamlined supply chain capable of operating out of a smaller footprint.
Alongside the one-off costs of restructure, operating costs were slightly higher. The business said the financial year finished in line with forecast with an EBTIDA loss of £25m including £11.5m of one-off costs, and the business moved into the new financial year with full headroom in its banking facilities and additional funds from its shareholders to underpin investment.
Andy Dawkins, CEO, Avara Foods said, “2023/24 was planned to be a year of change, but it was necessary to position us for the future. We are already reaping the benefits in financial performance in FY25 which is running in line with expectations. While closing facilities and losing valued colleagues is never easy, we did this in the right way in line with our strong values. I am heartened by the opening of our new facility at Wednesbury which has grown quickly on the back of strong customer support.”