Boparan Holdings Limited, the parent company for 2 Sisters Food Group, has published its consolidated results for the 13 weeks ended 29 April 2017.
Operating profits declined 36.6% during the quarter, from £21.6 million to £13.7 million, while sales continued to grow.
Q3 headlines
* Total sales up 4.8% to £821.9m
* Like-for-like sales up 3.1% to £809.0m
* Protein division reporting strong sales progress year-on-year
* Like-for-like operating profit at £13.1m; affected by one-off items
* Results impacted by cost inflation, avian flu in Europe and disruption and redundancy costs
* Working closely with customers on inflation price recovery; realised in part from April onwards
* Efficiency and cost reduction programmes accelerating
Ranjit Singh, 2 Sisters Food Group CEO, said: “This was a tough trading quarter for the business, but there are clear signs in the top line performance that we are pursuing the right strategy to deliver sales and margin performance improvements.
“The competitive landscape remains challenging and our sector faces currency fluctuations which have brought about higher input prices. In addition, our European poultry export business in both Poland and the Netherlands has been affected by Avian Influenza outbreaks on the continent, and we have experienced some restructuring costs elsewhere in the business.
“Our Protein footprint programme is progressing well and will ensure we have the right product, in the right location at the right time. Latest developments include expanding our cutting facilities in Scotland and reconfiguring our supply chain to achieve a leaner structure. Following Consultation, we have announced the closure of one of our Birmingham sites. We have also strengthened our commitment to reduce poultry waste by agreeing a three-year surplus supply contract with Crawshaws Butchers.
“Our Chilled and Branded businesses have been tackling commodity inflation head on, with recovery plans successfully agreed with our key customers, and they continue their focus on cost out and efficiency programmes.
“We see no major changes to the external environment for the rest of the financial year. We remain resilient, adaptable and as committed as ever to deliver for our customers. Our Better Before Bigger strategy will achieve our long-term ambitions.”