Ga Reports Strong Organic Growth

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GA reports strong organic growth
5th December 2018

By Sandra Pearce

Pet food manufacturer GA Pet Food Partners has reported an increase in turnover from £102m to £113m, with a rise in operating profit of more than £300,000 from £280,000 to £633,000.

In its annual report, the Lancashire company says its profitability can be attributed to ‘an increase in the customer base during the period’, which ran from January 2017 to January 2018.

“The increase in sales has been achieved by organic growth with new and existing partners, generating new sales through new product development and new sales using highly generic recipes across many markets,” the company said.

SUBSIDIARIES
GA Pet Food Partners supplies to a wide range of companies, from multi-national organisations to independent retailers.

UK income was up from £63.5m to £67.9m, while European sales increased from £34.7m to £39.6m. Revenue from the rest of the world rose from £3.78m to £5.84m. It says growth in ‘high value exports’ continues to be a ‘significant contributor to overall operating profit’.

Over the year, it said it had ‘continued the development of its wholly owned subsidiaries in Poland, German and France, and has formed a wholly owned subsidiary in Italy’.

It said: “The company continues to develop strong working relationships with leading branded partners throughout the UK, Europe, Russia and the Far East. In addition, the company is working with partners who not only have traditional channels to market via physical retail outlets, but also those with a dual or focussed strategy on internet retail has been very successful.”

DIRECT-TO-DOOR BOXES

GA said that its investments in software, storage and the despatch of ‘B2C direct-to-door boxes’ continues to ‘offer growth for both the company and its partners’.

It said: “This area will become increasingly significant within the market place and offers great scope for the company’s partners to offer multi-channel solutions especially for the tech-savvy, time-pressured, convenience-driven purchaser. The consumer of goods using this service has tended to be the pet owner who is looking for the highest quality at best value. The company can only see this trend continuing.”

Construction is ‘largely complete’ on phase one of an ingredients kitchen, pantry and larder, as well as a new fresh meat kitchen and packaging hall. Production is estimated to start in the first quarter of 2019.

GA said: “Innovation continues to drive the business forward. Our customers have increasingly benefited from a move from premium to super premium pet food with ever increasing levels of fresh meat inclusion.”