PHW Group achieves slight increase in sales and increases production volume of all welfare products to 60% in 2018

Sales increase slightly by around 1% from €2.46 billion to €2.48 billion // Substantial investments of over €191.3 million in modernisation and upkeep of German locations // Poultry meat consumption continues to increase to 21.0 kg per capita // Increase in production volume of all welfare products to 60% in 2018.  

Rechterfeld, Germany, February 2018. The PHW Group achieved a slight increase in sales in the last financial year (target date 30.06.2017), despite two major fires in Wiesenhof factories in Bogen and Lohne. In addition, the family-owned company from Lower-Saxony has positioned itself well to meet the continuing increase in demand for healthy and high-quality poultry with substantial investments of more than €191.3 million (previous year: €238.7 million) mainly in its German locations – according to estimates from the industry service providers, Marktinfo Eier & Geflügel (Market information eggs and poultry), consumption of poultry meat has risen to 21.0 kg per capita in 2017 (previous year: 20.9 kg). The production volume of welfare products has developed significantly within the PHW Group: at the beginning of 2016, around 500,000 animals from various animal welfare initiatives were being slaughtered per week. By the end of the last financial year, this production volume had more than tripled to around 1.7 million animals per week.  

The PHW Group reported a slight decline in sales in the core business area of poultry specialities due to a major fire at the slaughterhouse in Lohne (Oldenburger Geflügelspezialitäten GmbH & Co. KG) in March 2016. Sales volumes in this sector fell by 0.7%– from around €1.38 billion to €1.37 billion. The interruption to business in Lohne also influenced the export business: the proportion fell here from 20.1% to 16%, as priority was given to the domestic market.  

The PHW Group again achieved a slight increase with poultry companies abroad: the Polish, Bulgarian and Dutch sectors contributed around €477.6 million (previous year: €471.2 million) to the total sales of the PHW Group, which in the financial year 2016/17 showed an increase of around 1% to €2.48 billion (previous year: €2.46 billion).  

The number of employees decreased slightly due to the major fire in Lohne: the PHW Group employed 6,772 people in the past reporting year (previous year: 6,876).  

Sales of poultry specialities for chicken, turkey, duck, convenience food and sausage increased by a total of 4.2% to 724,609 tonnes at the PHW Group (previous year: 695,075 tonnes). While sales of chicken fell due to the two fires in Bogen and Lohne, there have been positive developments in both the areas of sausage and convenience food, as well as with foreign affiliates. 

The other business sectors of the PHW Group can look back on a successful reporting year. The “Animal Nutrition and Health” division grew by 3.3%, mainly due to growth at Cuxhaven-based company Lohmann Pharma Herstellung GmbH. Similarly, MEGA Tierernährung GmbH & Co. KG in Rechterfeld achieved an increase in sales of 7.1%, due to an increase in sales of poultry feed. The “Human Nutrition and Health” division once again registered strong growth with the globally active Cuxhaven-based Nutrilo GmbH. The expansion of international business in particular contributed to its significant increase in sales of 17.8%.  

Investing in achieving sustainability 

At €191.3 million (previous year: €238.7 million), the PHW Group is again sustainably investing, predominantly in its German locations. €65.7 million alone has gone into the reconstruction of the slaughterhouse in Lohne (Oldenburger Geflügelspezialitäten GmbH & Co. KG). Further large-scale investments benefited Möckern-based  

company Anhaltinische Geflügelspezialitäten GmbH with the construction of a new slaughterhouse facility including a social wing. Likewise, Märkische Geflügelhof- Spezialitäten GmbH in Königs Wusterhausen invested in improved production processes. New production technologies were expanded at Allfein Feinkost GmbH & Co. KG in Zerbst. €9.7 million went into investments in terms of sustainability alone, such as measures to conserve resources and reduce emissions. In the meantime, six PHW Group locations have been certified according to the “Sustainable Business Food” standard of the Zentrum für Nachhaltige Unternehmensführung (Centre for Sustainable Management) – the PHW Group is the only company in the meat industry to have been tested to this standard. Further information can be found in the current Sustainability Report 2017 at www.phw-gruppe.de or www.wiesenhof.de.  

The PHW Group increased its research and development expenditure to €2.3 million and, for example, invested in the further development of alternative forms of animal husbandry. 

Ambitious goals in the animal welfare sector 

The PHW Group creates a variety of offerings for customers and consumers with its top quality, highest product safety standards and innovative products. For almost 20 years, the family-owned company from Lower Saxony has been offering a wide range of products from conventionally produced poultry meat, welfare products such as Privathof poultry, which is accredited by the German Animal Welfare Association animal welfare label (entry level), and even a vegan range. At the same time, the significant increase in the production of all welfare products to 1.7 million animals per week across the whole PHW Group reflected the company’s efforts in this area – including the Initiative Tierwohl (Animal Welfare Initiative), Privathof poultry, Beter Leven, Kip van Morgen, Donautal Premium poultry (Swiss Animal Welfare Standard). That is around one third of the German production of the PHW Group. “Our next goal is to increase production of all welfare products to 60% in 2018,” explains Peter Wesjohann, CEO of the PHW Group.