The plant’s closure for a month was the primary reason for a £4.9m drop in operating profit for 2 Sisters’s protein division.
The factory reopened in November following retraining of the 850 staff and the provision of full-time food inspectors at all of its plants.
Sales up but operating profits fell
Total sales rose year on year by 3.8% from £818.3m to £849m but operating profits slipped from £19.8m to just £8.4m as profit margins fell from 2.4% to 1%.
Ranjit Singh, 2 Sisters Food Group chief executive officer, said that despite the tough environment, the company had grown revenues during the first quarter and had worked hard to deliver for customers.
“As well as commodity inflation, our results have also been affected by the temporary suspension of operations at our poultry cutting plant.
“We are taking action now to improve margin performance and we should see the results of this coming through in the second half of the year, as we work through our plans to strengthen our business in all areas.”