Profits hit as food group endures tough quarter
Food group 2 Sisters said it remains “resilient” after a tough quarter which saw profits halved.
The business, which owns Fox’s Biscuits and Goodfella’s Pizza and produces products for the major UK supermarkets, blamed higher input prices for the fall in profitability.
Although sales were up 4.8% to £821.9m for the 13 weeks to April 29, EBITDA was down 54% to £9.4m.
Ranjit Singh, 2 Sisters Food Group chief executive, said: “This was a tough trading quarter for the business, but there are clear signs in the top line performance that we are pursuing the right strategy to deliver sales and margin performance improvements.
“The competitive landscape remains challenging and our sector faces currency fluctuations which have brought about higher input prices. In addition, our European poultry export business in both Poland and the Netherlands has been affected by Avian Influenza outbreaks on the continent, and we have experienced some restructuring costs elsewhere in the business.”
“We see no major changes to the external environment for the rest of the financial year. We remain resilient, adaptable and as committed as ever to deliver for our customers.”
Separately, the group has appointed former British Sugar managing director Richard Pike as its chief financial officer.