2 Sisters owner’s profits slump

By James Ridler contact

- Last updated on GMT

2 Sisters owner Boparan Holdings reported a slump in profits for the first quarter of the 2018/19 financial year
2 Sisters owner Boparan Holdings reported a slump in profits for the first quarter of the 2018/19 financial year
2 Sisters Food Group owner Boparan Holdings has reported a 75% drop in profits for the first quarter of the 2018/19 financial year, as it warned its “turnaround” of the business was not expected to bear fruit until the third quarter of the year.

Profit after exceptional items and before interest and tax was £2.1m for the 13 weeks ended 27 October 2018, a drop of £6.3m compared with the same period last year. Operating profit for the business took the biggest tumble, dropping 89.8% to £0.9m.

Like-for-like sales saw a slight increase for the reported period, up 0.2% from £706.7m to £708.3m. These results excluded the impact of Boparan’s disposals of the Goodfella’s Pizza and Red Meat businesses.

Strong commodity headwinds

Boparan blamed the loss in profit on strong commodity headwinds, as well as weaker biscuit sales volumes and phasing on seasonal lines. The Fox’s brand also experienced weaker sales during the reported period.

Commenting on the results, chief executive Ronald Kers said: “We have made it clear that the size of the turnaround challenge is substantial and to achieve success on this scale will take time.

“We have diagnosed the fundamental operational issues and the management team know what levers to pull to drive change through the organisation.”

In a statement issued with the results, Boparan said the turnaround could not be achieved overnight, but it was on track to build sustainable improvements within the financial year.

No benefits until Q3

However, the impact of this turnaround on margins will not be experienced until the third quarter of this financial year.  

“There is an enormous amount of work still to do and it will take time before we see the green shoots of growth,” ​Kers added.

However, we are focusing on our core with a new team, laying strong foundations for a more consistent performing and profitable business and have a plan of action which is realistic and can be executed.”

Boparan Holdings’ divisional performance

  • Protein: ​Like-for-like sales up 0.4% to £470.8m from £469m, with a like-for-like operating loss of £3.1m (down 80.6% from a profit of £0.6m)
  • Chilled: ​Like-for-like sales increase of 4.5% to £158.5m from £151.7m. Like-for-like operating profit rose by £0.8m to £2.6m
  • Branded:​ Like-for-like sales fell by 8.1% to £79m from £86m, and like-for-like operating profit reduced to £1.4m from £3.1m

Related topics: Business News, Bakery, Meat & poultry

Related news

Show more

comments

Post your comment

We will not publish your email address on the website

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.

Follow us

Featured Events

View more

Products

View more