Avara Foods has published its latest Annual Report and Accounts at Companies House for the year ending May 2024. These highlight a period of major business restructuring to create a more efficient and productive supply chain. The impact of this level of change, while reflected in these annual results, are consistent with a business in a strong financial position, with no bank borrowings and strong shareholder support able to make, and finance the difficult decisions in short term, to ensure stability, growth and long-term success.  

Over 2023/24, Avara closed two processing facilities, alongside opening a dedicated Added Value processing site. Across the full twelve months, Avara undertook 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, in line with managing a significant transformation programme.  Despite this level of change 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.  

Avara has embraced the well documented customer led initiative to rear birds to higher welfare standards. The timing of this development complements the prior year’s restructuring of operational facilities by further optimizing agricultural supply and returning the industry towards an equilibrium between supply and demand. “The hard work done on streamlining the business is now bearing dividends”, Dawkins observed, “putting us on track in a market where welfare, affordability and availability are all key priorities as we head into a time when UK food security and production will be more important than ever”. 

As in previous years, tough economic conditions have not affected Avara’s commitment to be a responsible business.  In its most recent For Good Annual Sustainability report, Avara confirmed a continued reduction in carbon emissions ahead of SBTI targets and improvements across the board in areas relating to safety, food quality, welfare, ethical treatment of people and support for the communities in which it is based.