Profitability improves at 2 Sisters Food Group
Ranjit Singh Boparan © Tim Scrivener A strategy to be “better before bigger” appears to be paying off for 2 Sisters Food Group, with improvements to the company’s bottom line despite turnover remaining static.
In its full-year results for the period to 30 July 2016, turnover was £3.1bn, and operating profit £90.5m.
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That was 58.2% up on the previous period, though when exceptional items, interest and tax are accounted for, the company still posted a £1.4m loss.
Net debt was also chipped away at, down some £10m to £706.4m when compared with 2014/2015 figures.
The full-year results were released with 2 Sisters’ Q4 numbers, which report a similar improvement.
2 Sisters protein division (largely poultry)
- Overall sales in the protein division in Q4 were up 0.8% at £542.0m (Q4 2014/15: £537.6m).
- Operating profit was up 25% to £12.0m (Q4 2014/15: £9.6m).
Chief executive Ranjit Singh Boparan said: “We are pleased to report another encouraging performance with continuing improvements in sales and operating profit.
“The market remains tough with the uncertainties around the UK’s decision to leave the EU, currency-driven inflation and the volatile grocery market still applying great pressures on the food manufacturing sector.
“Our investments will unlock cost efficiencies and help accelerate our Protein Footprint Programme.
”This is already beginning to deliver as we see our new Derby site producing Ready To Cook chicken for major customers and the £45m refurbishment of our Scunthorpe facility enabling it to increase volume throughput.
“Our Better Before Bigger strategy is showing it was the right thing to do for our business and it is delivering promising results.”