Turnover was up 0.5% to £3.05 billion, driven by volume growth in the UK business – partly off-set by the year-on-year impact of disposals in FY23. This growth reflected higher turnover in both the UK poultry and meals & bakery businesses, driven by higher volumes.
Operational improvements in the UK poultry and meals & bakery businesses – such as realising the benefits from investments made in improving line efficiency in UK poultry – meant profit before tax for the group was up £63.5 million to £35.5 million (from a loss of £28 million in 2023).
Inflation continued to impact the business, particularly in regards to labour and overhead cost increases, but was mitigated by pricing pass-through mechanisms supported by its customers.
Reduction in net debt
Net debt of £487.1 million was reduced by £39.1 million, largely driven by the recovery in earnings before interest, taxes, depreciation and amortisation, resulted in leverage at an ‘historic low’ of 3.0x.
Ranjit Singh Boparan, president of Boparan Holdings and owner of 2 Sisters Food Group Ltd, said: “These results show we have momentum as we continue to transform our business. We have a clear vision for the future and our strategic priorities are focused on doing business responsibly and leaving a legacy of a better business and a better world for the next generation.
“Our Next Generation strategy means we are firmly committed to investing in our factories and utilising advanced technologies, helping to grow our core business and supporting our sustainability ambitions.
“These priorities are underpinned by our relentless focus on doing the basics brilliantly and being consistent in the way we operate whilst maintaining discipline in our execution to deliver for our customers and stakeholders.”
2 Sisters financials
Boparan Holdings subsidary 2 Sisters Food Group Ltd – which excludes 50% of UK poultry operations the wider groups poultry operations, all ready meals and bakery operations, and all European poultry operations – reported turnover of £1.6 billion for the 52 weeks ended 27 July 2024, up 6% from the same period the previous year.
This was thanks to an increase in underlying sales as a result of higher volumes and better mix – both of which offsetting pricing impacts of lower feed costs during the year.
Turnover also benefited from the increased trade as a result of the hive across of Amber Foods in the second half of the year and a £30 million management recharge to Amber Foods prior to the transfer of trade and assets.
More impressive was 2 Sister’s leap from an operating loss of £15.6 million in 2023 to an operating profit of £95.5 million in its latest results. This significant turnaround for the business was attributed to the aforementioned Amber Foods hiving, as well as underlying profitability as the challenges balancing supply and demand in the prior year were mitigated.
2 Sisters also benefited from the closure of its Llangefni factory and investments in new equipment that it claimed had increased automation and efficiency.
Total employment
The total number of people employed by the company increased across the company, with the number of staff working in production up 1.7% to 7,737, while the number of administrative staff grew 2.77% to 777 (8,514 total).
Boparan Holdings chief financial officer Paul Friston added: “This latest set of results shows solid financial progress and a strengthened financial position, with the Group’s leverage ratio at its lowest level in over a decade.
“The full-year numbers evidence that the turnaround actions implemented over the past three years are translating into sustained financial results. We see further opportunities in our business as we focus on becoming a more efficient company while continuing to improve cash generation.”
Meanwhile, last month saw Boparan Holdings cleared to complete the acquisition of a poultry feed mill site in Norfolk.
