Food group ‘in stabilisation phase’ but profits down 75%
The new chief executive of 2 Sisters Food Group has reinforced the size of the challenge ahead as he seeks to turn around the £3bn-turnover business.
Ronald Kers has said the food group is “in stabilisation phase” after enduring a difficult 18 months that included a high-profile undercover investigation inside its factories which led to a Parliamentary inquiry.
First-quarter profits were £2.1m, down 75% on a year earlier, which itself was 55% lower than for the opening three months of its 2017 financial year.Kers, who joined in June to take over day-to-day running of the business from owner Ranjit Singh, said: “We have made it clear that the size of the turnaround challenge is substantial, and to achieve success on this scale will take time. We have diagnosed the fundamental operational issues and the management team know what levers to pull to drive change through the organisation.
“Positive momentum is building and we are implementing improvements, both with ‘low hanging fruit’ and longer term strategic objectives.”