Birmingham, England-heaquartered Boparan Holdings, parent company of the 2 Sisters Food Group, on November 3 reported sales were up 2.4% to £775 million in the fourth quarter that ended on July 30. Operating profit climbed almost 40% to £26.3 million during the 12-week period, while like-for-like profit advanced nearly 35% to £25.3 million.
However, after exceptional items, pre-tax profit was down £10.8 million to £2.4 million. Over the past 52 months, sales were flat at £3.13 billion, while operating profit advanced 58% to £90.5 million. After exceptional items were factored in, full year losses were cut in half to £1.4 million.
CEO Ranjit Singh, who described the performance as encouraging with continued improvements in sales and operating profit, added: “The market remains tough with the uncertainties around the UK’s decision to leave the EU, currency-driven inflation and the volatile grocery market still applying great pressures on the food manufacturing sector.”
The company’s frozen and biscuits segment businesses continued to post gains in market share in both the United Kingdom and Ireland, with a new contract for own label frozen pizza secured from a retailer.
On the frozen branded products front, its Goodfella’s pizza offerings continued to grow strongly in the UK and Ireland, and Donegal Catch Creations has won an Irish Marine Seafood Award. The division has also saw an increase year-on-year in export orders for its Christmas puddings.
“Overall, the chilled division is showing encouraging profit growth, and our strategic investments here puts us in a strong position for the future,” said Singh. “We continue to launch new products and win new business, including a substantial £40 million contract for breaded fish and launches in traditional ready meals and soup categories, which will help to offset business which transfers to other suppliers in 2017.”
Sales in the company’s protein division in the fourth quarter were up 0.8% to £542 million, while operating profit rose 25% to £12 million.
“We moved to sole supply for a major customer’s rotisserie chicken at the expense of a competitor, a reflection of the category and operational support we have given the customer,” said Singh. “We have also renewed contracts with customers and won additional frozen barbecue and Scottish fresh whole bird business.”
