Food group whips up profit despite unhelpful ingredients
FOOD manufacturer 2 Sisters Food Group has strengthened its profitability despite challenging ingredients of price deflation, currency headwinds and uncertainty caused by the EU referendum.
Its parent company Boparan Holdings increased its retained profit by £2.9m to £3.4m in the quarter to April 30 despite tough trading conditions.
Like-for-like sales slipped 0.9%, although total sales rose 0.6%, to £784.5m.
Ranjit Singh, 2 Sisters Food Group chief executive, said: “This is another positive performance, with the progress we experienced in previous quarters continuing and the Group improved total sales and operating profit, despite the volatile grocery market, deflationary pressure and uncertainties around the EU Referendum.”
Since the quarter finished, the group has bought the Giraffe restaurant chain from Tesco. The 54 restaurants will be operated through the group’s subsidiary Boparan Restaurant Holdings.
The group has continued to invest, spending £6m on an extension and equipment upgrade at one of its Nottinghamshire sites. It has also begun work on a “major upgrade” of its Scunthorpe poultry factory while it has started production at its Added Value site in Derby
Mr Singh added: “The strategy we set out last year is delivering. A commitment to great food, innovation and efficiency, and great customer relationships is helping us to succeed.”
The group also reduced its net debt position by £31.3m to £711.0m.
