Boparan Holdings, the parent company of 2 Sisters food Group, has posted a huge leap in sales in its full year results, but losses during the period also grew significantly.
The results, which cover the 53 weeks to 2 August, put turnover up 18.5% at £3.4bn. They also post a “satisfying” like-for-like profit figure – where the purchase of Vion and other “exceptional” costs are stripped out – up 5.9% to just shy of £100m.
Protein – predominantly the production and sale of chicken – was again the star performer of 2 Sisters’ categories. It posted a sales increase of 35.4% and, of the total business operating profit of £89.5m, protein contributed £69.1m.
Branded products also performed well. Sales in the category dipped 3%, but pre-exceptional profits were up some 40% to £25.8m.
Despite the huge growth in turnover, overall losses for the group after exceptional items, interest and tax, more than quadrupled to -£143.3m this year. The results say it was the cost of factory sales, closures and refinancing that led to the higher loss.
The ratio of debt to earnings also increased, from 3.18 to 3.69.
Ranjit Singh, CEO of 2 Sisters Food Group, said the focus over a “transformational” 12 months had been on lowering the company cost base and building a “strong foundation”.
“We have made a series of tough decisions and taken action throughout the year to ensure we build a strong foundation for our business which will set us up for success in the longer term.”
He added the closure of Haughley Park, a “cost reduction” plan in Scotland and exiting salad and cake production had all incurred costs.