UK: 2 Sisters posts Q2 loss despite sales increase
2 Sisters has reported a Q2 loss due to higher costs
Boporan Holdings Ltd, the owner of 2 Sisters Food Group, has posted a net loss for the second quarter of 2014 despite like-for-like sales growth of 3.9%.
Boporan Holdings, holding company for the meat and poultry production firm, posted a net loss of GBP27.5m (US$45.6m) for the 13 weeks ended 25 January compared with GBP12.3m for the same period last year.
Operating profit fell to GBP13.3m compared to GBP26.1m for the same period a year earlier. Like-for-like operating profit was also down at GBP15.3m from GBP26.2m a year earlier.
Higher costs and a GBP20.7m impairment charge linked to facility closures hit 2 Sisters Food Group's bottom line, the company revealed.
Ranjit Singh, CEO of 2 Sisters Food Group, said: "This has been a very challenging quarter, but we delivered a creditable performance in Q2, despite the tough and competitive market conditions. We delivered for our customers over the key Christmas trading period, but in line with expectations, this impacted profitability in chilled due to the significant investment made in product launches and disruption costs of new ranges. Protein made good progress with the integration of Vion on plan, we continued to make steady progress in branded and we are taking actions to address chilled performance and investing in capacity to meet our customer growth."
He added that the firm was addressing its cost base and would focus on working with "customers to drive organic growth" and integration of acquired businesses into the group "to bring about long-term growth benefits".
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