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Beston sees stellar recovery in post-pandemic FY2022

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The Beston Global Food Company has ended FY2022 by delivering significant improvements in its sales and manufacturing figures in the third and final phase of its 10-year growth plan.

While Beston confirmed an expected statutory loss for the financial year, primarily due to the impact of COVID-19, their management team are driving the valorisation of the investments Beston has made in operations, infrastructure and people, resulting in strong positive financial results in Q4.

Beston increased Group Net Sales in FY2022 by 24%, while Group Gross Margins with six times higher than FY2021. It also posted record production figures for mozzarella and lactoferrin, reaching close to 15,000 tonnes and 15 tonnes of each respectively.

Beston chief executive officer Fabrizio Jorge said that the company’s profitability in FY2022 was negatively affected by a host of COVID-related issues beyond its control.

“For the first nine months of the financial year, the entire industry saw a dramatic reduction in food services sales as restaurants and various outlets in the hospitality sector were closed because of government-imposed lockdowns,” Jorge explained.

Beston was also impacted by significant increases in supply-chain costs, especially in international markets where the company has seen rapid growth in brand awareness.

“For some of our international trading routes, the increases in shipping costs were over 300 per cent,” Jorge said.
During Q4 FY22, the newly established management team put in place a series of actions to review Beston’s market, customer, product, and pricing mix positionings. The results of this were significant with over 50% of Beston’s FY2022 margins delivered in Q4 alone.

Jorge said they are confident that Beston is in a better position than at any time in the last three years and is very well placed to continue its growth trajectory in revenues, margins and profits.

Beston’s management team has recently decided to receive their assigned STI bonuses in the form of equity rather than cash, indicating their confidence in the company’s future. The bonuses were granted in recognition of the work delivered in Q4 of FY2022.

Beston Chairman, Dr Roger Sexton said, “The decision by these senior managers to elect to receive shares over cash for their STI bonus payment is indicative of their commitment to the company and their keenness to have ‘skin in the game’ as BFC progresses.”

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