Third quarter profits drop at 2 Sisters
In its results for the 12 weeks to 28 April 2018, the business recorded a 77.4% drop in profits, down from £13.7m last year to £3.1m. This performance was driven by losses in its protein division which 2 Sisters attributed to the negative impact of beef, poultry and fish price inflation.
The group’s total sales were up 1.8% year-on-year, from £821.9m in 2016/17 to £836.7m, while like-for-like sales were up 1.3%.
Other operational highlights include the disposal of Goodfellas in April which generated £200m, sales increases in its protein and chilled divisions and a drop in sales for its branded division. A new chief executive, Ronald Kers, was also appointed in early June.
Ranjit Singh, president of Boparan Holdings Limited, said: “During the third quarter we delivered performance in line with our expectations, as messaged in our Q2 call. We have also strengthened our balance sheet considerably with the disposal of the Goodfella’s pizza business.
“We are making good progress with our Change programme as we refocus on our core strengths. The appointment of Ronald Kers as CEO will help to further accelerate the work we have already started to change our business, introducing greater transparency, a stronger colleague voice, and simplifying a complex organisation. Under Ronald’s leadership I am confident we can take the business performance to the next level, with our focus on what has always been at the heart of our business - delivering great quality food at competitive prices for our customers.”
Looking ahead, the business said it would be taking “clear actions to address the disappointing performance in our protein business”.
This includes the four announced site closures which are expected to reduce overheads by around £20m on an annualised basis. The business is also “exploring opportunities to drive further efficiency improvement through the business”.
“We remain confident that our refined strategy is enabling us to strengthen our balance sheet, stabilise our core operations and position us to move forward positively into 2018/19.”
