2 sisters post loss despite Vion acquisition
British meat producer, 2 Sisters Food Group has posted a net loss in its second quarter results to the week ending 25 January, but CEO Ranjit Singh said the company put in a “creditable performance” despite “tough and competitive market conditions”.
Like-for-like sales – which strip out the acquisition of Vion – were up 3.9% to £647.2m, and the group made a £13.3m operating profit before Vion's accounts were added in.
The inclusion of the loss-making Vion business adds more than £250m of sales, but makes losses for the quarter total £27.5m, some £15m worse than the same quarter of the previous year.
The group has sought to rationalise in the past 12 months, addressing a "higher poultry cost base in Scotland" by closing its Letham site and changing shift patterns at Coupar Angus. It has also closed an added-value poultry operation, Haughley Park, and opened consultations on the future of two further sites, Corby and Avana.
The drop in like-for-like profitability from the previous year was put down to "significant" investment made in product launches, as well as "disruption costs" incurred by introducing new ranges.
"Our strategy remains in working with our customers to drive organic growth aligned with utilising our experience of turning around acquired businesses and integrating them into our group to bring about long-term growth benefits," said Singh.
Source: Poultry World
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