2 Sisters’ owner targets ‘Better before bigger’, as profits rise
Like-for-like operating profit during the second quarter climbed by £27.1M to £22.8M, with like-for-like profit margin up to 2.9%.
Total sales fell by 0.6% to £792M, compared with £797M in the same period of last year.
Like-for-like sales rose by 0.4% from £797M to £800.1M, with further quarter-on-quarter progress reported from £787.9M.
Net debt fell to £687.4M.
‘Starting to deliver’
2 Sisters Food Group boss Ranjit Singh said: “In this quarter we are seeing signs of our strategy to build a better business starting to deliver.
I am pleased to report that the progress we experienced in previous quarters continues with improved performances in like-for-like sales and operating profit, despite the fragile grocery market.”
The quarter had seen important successes throughout the business, with “new wins and new product development,” he said.
Singh said the manufacturer’s investment programme was progressing well. “In [the] Poultry [division], we have now identified suitable locations that will help to improve efficiency and delivery, fundamentally changing the supply chain.”
‘Improve efficiency and delivery’
The Chilled division’s investment also continued to be on time and to budget, with capital works at Carlisle and Rogerstone now largely completed.
The leasing of the additional site in Derbyshire – formerly S&A Foods site – was also on track with manufacturing scheduled to start later this spring. “This will allow us to facilitate the Protein Footprint Programme quicker and without increased cost,” said Singh.
Measures to reduce campylobacter in poultry were making progress, with innovative factory interventions in Scotland showing “very promising early results, and encouraging independent data results for our extensive ‘no thinning’ trials”.
Boparan Holdings and the 2 Sisters Food Group had the right strategy in place to deliver and help counter “the headwinds” experience in the grocery market.
“A relentless commitment to great food, innovation and efficiency, and great relationships with our major suppliers and customers are helping us to succeed,” said Singh. “Our focus on costs, efficiency, investment, innovation and deepening customer relationships will remain paramount.”
How the divisions performed
Protein
Like-for-like sales in the Protein division in the second quarter were broadly flat at £530.7M. Operating profit was up to £7.1M, compared with a second quarter 2014/15 loss of £7.7M.
Chilled
The Chilled division saw like-for-like sales increase by 0.8% to £165.7M and operating profit up to £3.7M, driven by “record Christmas volumes, re-invigorated ranges and new product launches”.
Branded
The Branded division was said to be performing well with second quarter like-for-like sales up 4% to £103.7M, with operating profit increasing by £10.5M to £11.3M.
