OSI, the food business best known as the leading burger supplier to McDonald’s, saw profits fall sharply in its UK business last year. Accounts filed for OSI’s UK subsidiary show operating profits plunged 20% last year to just over £5.5m (€6.1m) as profit margins in the business narrowed to just 1.8%.

Pre-tax profits in OSI’s UK subsidiary fell by almost a third (-30%) to just under £4m (€4.4m). OSI blamed the slump in profits on additional overheads, including increased infrastructure costs, extra sales volumes and a planned company reorganisation.

Despite the fall in profits, OSI’s UK business saw sales rise by 2% during 2019 to reach £303.6m (€335m). OSI said it was able to grow sales despite challenging trading conditions during the year.

Employing just under 600 people, OSI is a huge buyer of burger meat in Ireland and the UK, and is the world’s leading supplier of burgers to fast-food giant McDonald’s. The accounts for OSI’s UK subsidiary show the company holds over £33m (€36.5m) worth of shares in Brazilian meat company Marfrig.