PHW Group makes long-term investment in sites in Germany

4.8% increase in turnover from € 2.27 billion to € 2.38 billion // Growing potential for animal welfare products and vegan range // Increase in investment to € 115.2 million // Workforce grows to 6,619 // Sustainability certification according to the ZNU standard for Wiesenhof sites  

Rechterfeld, February 2016. With high levels of investment of over € 115.2 million (previous year: € 66.6 million) in its own plants, an increase in personnel (from 5,082 to 6,619) and the continued growing demand for high-quality poultry, the PHW Group was able to successfully continue its growth course in the last financial year (effective date 30.06.2015).  

Based on estimates by industry market research company Marktinfo Eier & Geflügel (MEG), per capita chicken consumption continued to rise last year from 19.5 kg to 19.6 kg. In the poultry specialities core business sector the PHW Group posted a fall in sales because of the lost production at Donautal Geflügelspezialitäten in Bogen. Turnover went down in this segment by 3.1% – from around € 1.44 billion to € 1.40 billion. The PHW Group thrived with its poultry companies abroad. The Polish, Bulgarian and Dutch subsidiaries contributed around € 392.5 million to the total turnover of the PHW Group, which rose by 4.8% last year (effective date 30.06.2015) to € 2.38 billion (previous year: € 2.27 billion). Overall, sales of poultry specialities including chicken, turkey and duck as well as convenience and sausage products have risen by 23.1% to 689,609 tonnes (previous year: 555,518 tonnes). This can be attributed on the one hand to the positively developing Convenience sector, which has grown by 12.6%, and on the other hand to the new foreign companies belonging to the PHW Group. 

The other business sectors of the PHW Group can also look back on a satisfactory reporting year. The “Animal Nutrition and Health” division experienced a drop in sales overall of 7%, which was in particular caused by lower feed prices at the mixed feed plants of MEGA Tierernährung GmbH & Co. KG (Rechterfeld). On the other hand, GePro Geflügel-Protein Vertriebs GmbH & Co. KG (Diepholz) and Lohmann Pharma GmbH (Cuxhaven), who also belong to this segment, posted increased sales of 8% and 5% respectively. Another real boost came from the “Human Nutrition and Healthcare” sector with the Cuxhaven-based international company Nutrilo GmbH, where the expansion of national business, in particular, contributed to turnover growth of 5.4%.  

Growing potential for animal welfare products and vegan range 

An important focus of the PHW Group in 2016 was animal welfare products. Wiesenhof “Privathof-Geflügel”, which carries the label of the German animal welfare organisation Deutscher Tierschutzbund e.V. (entry level), and the rearing concept “Kip van morgen” are to be further developed and sales increased.  

In addition, the vegetarian and vegan products have been well received by the trade and consumers. “Therefore, we are expecting further sales increases in this segment in the new year and see a share of the sausage market of three to five percent in the long term as realistic", explains CEO Peter Wesjohann.  

High level of investment strengthens corporate profile 

Long-term investment in its own corporate structures has always been one of the principles of the Rechterfeld-based family business. In the last financial year this meant in concrete terms the investment of € 60.9 million alone in the poultry specialities segment, including double-digit million amounts in the construction of the Brüterei-Süd (Regenstauf), redevelopment of the poultry slaughterhouse in Bogen, a new fresh production facility for Allfein Feinkost GmbH & Co. KG (Zerbst) and modernisation and expansion of the Polish slaughterhouse and sausage company Drobimex. The remaining investments went into product development and the further development of animal welfare. In this case above all various research projects for improving the well-being of turkeys and ducks were promoted. In contrast to the previous reporting year (€ 66.6 million in total), € 115.2 million were invested in financial year 2014/15. 

The number of employees has also increased: The PHW Group had 6,619 employees in the reporting year just ended (previous year: 5,082), which can mainly be attributed to growth in the Convenience segment, a new logistics company and the new employees at the Dutch and Bulgarian subsidiaries.  

Certification of the Wiesenhof sites in accordance with the ZNU standard 

“We do more” – this guiding principle is firmly entrenched in the corporate philosophy of the PHW Group and also practised. Hence since 2012 all Wiesenhof sites of the PHW Group have gradually been prepared for certification in accordance with the “Sustainable Food Business” ZNU standard. Following the successful certification of Nienburger Geflügelspezialitäten, Märkische Geflügelhof-Spezialitäten, Geestland Putenspezialitäten, Donautal Geflügelspezialitäten and Anhaltinische Geflügelspezialitäten, the slaughterhouse in Lohne and the Wiesenhof poultry sausage processing operation in Rietberg are now preparing for certification according to the ZNU standard. “Our declared aim is to have all of Wiesenhof's production sites certified in accordance with the ZNU standard by the end of 2016”, emphasises Wesjohann.  

In addition, redevelopment of Donautal Geflügelspezialitäten was started last year, so poultry are expected to be slaughtered again in Bogen in the second quarter of this year and further processing can commence.