2 Sisters profits slump in 2017
Boparan Holdings, the parent company of 2 Sisters Food Group, has registered sales growth in its latest full year results, but inflation and foreign exchange rates have hit profitability.
Total revenue is up 5.1% to £3.2bn when compared with the company’s 2016 results, but profit after exceptional items, before interest and tax was cut by two thirds to £22.8m.
That meant an overall loss of £37.7m in the 2017 report. The company almost hit profitability in 2016 with a £1.4m loss overall.
Q4 figures
Commenting on the fourth quarter figures, which are published alongside full year results, Ranjit Singh, chief executive at 2 Sisters said: “The business continues to face into an extremely tough trading environment with further increases in input costs.
“Clearly margin performance improvement is a top priority, and this will be underpinned by working hard on the action plans that make the most difference to our core business.
“Nevertheless, we remain positive about our top line growth and how that positions us with our customers.
“We continue to progress our Poultry footprint changes, which delivers quality, safety and a shorter, leaner, more transparent supply chain. We are investing in our people and our sites, with a view to optimising available capacity.”
Growth in protein sector
The Q4 results also reflect the full year’s figures, with a growth in revenues for the protein sector, but lower operating profits.
A final note in the trading statement covers the recent closure of 2 Sisters’ West Bromwich cutting plant, following a Guardian/ITV investigation.
Plant reopens
It says the plant is now operational again, following staff training, but that the closure will affect profitability in the first quarter of 2 Sisters’ next reporting period.
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