The Midlands-based business’s like-for-like operating profit and sales fell 20.3% and 3% to £22.8M and £773.6M respectively, based on the 13 weeks to August 1 2015 compared with the same period last year.
As a result, 2 Sisters will pump £150M in its poultry business in a bid to provide customers and consumers with innovative products, better value and reduced waste, the firm’s ceo Ranjit Boparan said.
£150M revolutionary investment
“Today we can announce that we are launching a major £150M investment programme in our poultry business that will completely revolutionise our supply chain end-to-end,” he said.
“We are aiming to further align our poultry business with the needs of our customers, creating world class facilities utilising state of the art technology, and driving efficiency.”
2 Sisters will also invest £55M in its Meal Solutions division to boost capacity across its four sites and put it at the forefront of developing the next generation of ready meals, Boparan added.
“These investments are in addition to our announcement in Q3 of £4M to increase our frozen pizza capacity.”
2 Sisters results at a glance
- Total sales down 13.5% to £756.8M
- LFL sales down 3% to £773.6M
- LFL operating profit down 20.3% to £22.8M
- Net debt up £52M to £716.6M
“We continue to focus on measures to reduce campylobacter, where we have invested £10M to date. Our efforts have been praised by the Food Standards Agency and have won the approval of major customers.”
Efficiency, investment and innovation
During 2015, 2 Sisters focused on costs, efficiency, investment and innovation and deepening customer relationships, according to Boparan.
Despite a tough operating environment, the business experienced a consistent improvement in its performance from the third quarter of 2015 to the fourth, with a 17.5% like-for-like operating profit to £22.8M.
Its protein business like-for-like sales were 6% lower than this time last year – in line with expectations – at £549.9M. 2 Sisters predicted a lowering of campylobacter contamination as a result of its £10M reduction programme launched last November.
2 Sisters branded business experienced like-for-like sales up 1.9% to £391.8M for the full year.
Its chilled division like-for-like sales also grew by 1.9% to £596.5M.