Q1 losses widen for food group Boparan
BOPARAN Holdings, the holding company for Birmingham-based 2 Sisters Food Group, has seen first quarter losses widen to £12m from £5m despite a 43% improvement in sales when compared with the corresponding period last year.
Operating profit before exceptional items was down £4m at £26.5m as the company continued to warn of tough market conditions.
In October, the company announced a £33.5m loss despite seeing a 23% increase in full year sales. The performance reflected the group’s acquisition of Vion UK’s Poultry and Red Meat businesses.
Total sales for Q1 2013/14 came in at £885.3m (Q1 2013: £616.7m), an increase of £43.6m. Like for like sales were up 8.7% at £670.3m.
Ranjit Singh, CEO of 2 Sisters Food Group, said: “We have made a solid start to our new financial year, in challenging and competitive market conditions as inflation continues to squeeze consumers spend. We delivered good like for like sales growth delivering food for every meal occasion.
“Our strategy remains in working with our customers to drive organic growth aligned with utilising our experience of turning around acquired businesses and integrating them into our wider group to bring about long-term growth benefits.
“The integration of Vion in our Protein Division is progressing on plan and our Branded recovery continues. During Q1 we have invested in our Chilled business, and our approach in understanding our customers and helping them to innovate is reflected in the significant number of new product launches in the first half of the year.
“We are taking actions to address Chilled performance once Christmas is delivered for our customers and would expect to see the benefits coming through in the second half. We will continue to work with our customers to reinvent our ranges in order to maintain our position as a leading Ready Meals manufacturer.”
