Profit hit by horsemeat scandal and Vion consolidation
Profits fell for 2 Sisters Food Group’s holding company Boparan Holdings in the past financial year, dented by the horsemeat scandal and the integration of Vion’s meat processing plants.
Reporting on results for the 52 weeks to July 27, ceo Ranjit Boparan said: “Trading conditions have been very tough with inflation impacting cash-squeezed consumers and the impact of the horsemeat scandal on the food sector.”
In March, Boparan estimated the horsemeat scandal would cause “considerable volume reduction” to 2 Sisters’ ready meal business.
While acknowledging Vion’s poultry operations were currently making a loss, Boparan said he hoped to bring them to break-even next year.
“By working with our customers we delivered good sales growth although profitability was lower due to the impact of the headwinds in chilled and dilution from the Vion acquisition.”
Like-for-like operating profit, excluding effects from the Vion acquisition, fell by 3.9%, from £107.7M to £103.5M.