2 Sisters says Brexit will make 2017 ‘one of our toughest’

The parent company of 2 Sisters Food Group has said it is preparing for “strong headwinds” in 2017 as the country gears up towards leaving the European Union.

According to Boparan Holdings’ first-quarter financials, both sales and operating profits have continued to improve in the period to 29 October 2016.

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Turnover improved 5.1% when compared with the same period the previous year.

But for protein, the division that accounts for the sale of poultry, sales improved by a more modest 1% and operating profit was down to £6m – £2.6m less than in 2015.

The results highlight expansion plans across the division, and an “aggressive cost focus”. They also mention that new business had been won for added-value poultry products and wings.

Ranjit Singh, 2 Sisters’ chief executive, said the uncertainty Britain faced would lead to a challenging period.

“The positive momentum we saw across the group in our last financial year continues in our quarter one results, but we expect strong headwinds in 2017 and the business is taking action now to prepare for these challenges.

“The market remains very difficult following the uncertainties around the UK’s decision to leave the EU. Currency-driven inflation and the price-pressured retail grocery market will make next year one of our toughest.”

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