The UK’s biggest chicken producer, 2 Sisters Food Group, has reported an annual loss before tax of £95.5 million, following a year of cost inflation, particularly on feed, and labour shortages leading to production inefficiencies. The previous year, the company made a loss before taxation of £34.3 million.
The results cover the 52 week period ending 31 July 2021. Turnover during the period rose to £1.4 bn, up from £1.275 bn the year before, thanks to new contract wins and product launches.
The report states the company faced ‘substantial headwinds’ during 2020/21 and cost inflation is expected to accelerate in the current financial year. “The Group has a number of agreements in place with customers to pass through cost increase automatically through pricing,” the report states. “The Group is working with customers to expand the scope of its pass through rachets as well as the speed at which changes are passed through into pricing.”