Food group creates ‘impetus’ in turnaround
Food manufacturer 2 Sisters believes it has “created the necessary impetus” in its turnaround for its changes to be having an effect on its financial performance.
The business endured a difficult period when high-profile investigations into its poultry plants put the spotlight on products it was supplying to major supermarkets.
At the same time cost pressures were squeezing margins at the Birmingham-based group, which owns brands including Fox’s and Holland’s.
Figures for the second quarter showed pre-tax profits before interest of £61.9m, compared with £2.4m a year earlier. Total sales were down by nearly £140m, to £711.5m, which mostly reflected the sale of its Goodfellas pizza, Red Meat and the Manton Wood sandwich businesses.
Net debt has also been brought down, reduced by more than £200m to £570m.
Ronald Kers
“Lasting change and consistent performance will take time, but our strategy is gaining traction, giving us confidence in the business turnaround plan.”
Although Kers said the business had “identified exciting opportunities to grow value in Fox’s Biscuits”, the value appears to be at the expense of jobs. Last week it emerged that up to 240 jobs were at risk at its Uttoxeter site, which could see one in three jobs lost.
