Boparan Holdings reported its operating profit was down by 57.6% to £8.4M – after the temporary closure of its 2 Sisters’ West Bromwich poultry plant – in its first-quarter results.
Earnings before interest, tax, depreciation and amortisation fell by £32.1M to £151.3M during the 13 weeks to October 28 2017.
Total sales climbed by 3.8% to £849M, while like-for-like sales were up 3.1% year-on-year. Net debt rose by £46M to £823.6M in the first quarter of the firm’s 2017/2018 financial year.
Ranjit Boparan, 2 Sisters Food Group ceo, said the business had grown revenues during the first quarter, despite the tough market environment.
“We are taking action now to improve margin performance and we should see the results of this coming through in the second half of the year, as we work through our plans to strengthen our business in all areas,” said Boparan.
The business remained optimistic that its change programme, coupled with some softening in commodity prices would improve its position in the second half of the financial year.