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Agrial Fresh Produce Reduces Losses Despite Rising Costs

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August 30, 2024

Agrial Fresh Produce, the salad supplier for McDonald’s, has managed to narrow its pre-tax loss to £5.5 million for the year ending 31 December 2023, down from £7.7 million the previous year. Despite this improvement, the company’s turnover fell to £107.5 million from £115.8 million in 2022 due to declining demand in the retail salad sector amid rising prices.

The Staffordshire-based firm, which also owns the Florette salad brand, attributed its reduced losses to price increases implemented to counteract inflation and rising costs. However, these price hikes led to the loss of some retailer customers, though gains in its food service division partially offset this. Agrial Fresh Produce also reduced its workforce by 32 employees, bringing the total number to 868.

The company highlighted ongoing inflationary pressures, particularly in labour costs, which significantly impacted both its business and the wider supply chain. Agrial has adapted by optimising its operations and restructuring shifts to maintain service levels while managing increased costs.

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