Northern Ireland chicken processor Moy Park has reported a 7% increase in half-year earnings (EBITDA) to £33.5m (€39m) as sales volume growth and cost reductions more than offset lower sales prices. Despite what Moy Park termed “challenging market” conditions, earnings margins widened 50 basis points to a very healthy 9.2%.

Overall, group revenue increased marginally (1.2%) to £365m (€420m), while pre-tax profits jumped 36% to almost £17m (€19m). Moy Park was also able to reduce its net debt position by more than £75m to sit at £138m (€159m), leaving the group quite lowly geared with a net debt to earnings ratio of just 1.16 times.

Moy Park chief executive Janet McCollum said the group was continuing its solid start to its 2016 financial year with these latest results.

“This positive performance is set against the background of a particularly challenging market and our progress continues to be built on a platform of strong customer relationships, innovation, improved efficiency and cost control,” she added.

Brazilian parent

Last week, Moy Park’s Brazil-based parent company JBS reported a 19% drop in second-quarter earnings to €830m as tightened margins in its US beef and chicken operations weighed on performance.

JBS set the wheels in motion last week on a corporate restructuring process that will see its international headquarters moved to Dublin, while the group lists on the New York Stock Exchange (NYSE).

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