An increased focus on proteins, the “transformational” acquisition of Vion’s business in the UK and the fallout of the horsemeat scandal have dented full-year earnings at 2 Sisters parent Boparan Holdings.
The company said today (29 October) that operating profit fell 14.4% in the 12 months to 27 July to GBP92.2m (US$148.2m).
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Operating margins were down 1.4% to 3.2% due to a higher proportion of sales coming from the lower margin protein business, the company said.
The group’s chilled performance, which boasts higher margins than its protein unit, was hit by the consumer reaction to the horsemeat scandal, resulting in lower ready meal sales. The firm said its branded recovery continues to be driven by frozen and added that a new management team is now in place to drive growth of the Fox’s biscuits brand.
Profits were also diluted by Boparan’s acquisition of Vion’s poultry and red meat business in the UK. However the company emphasised that the deal positions it for long-term growth through increased capacity.
During the year, Boparan said sales rose 23.3% to GBP2.88bn. Like-for-like sales rose 5.6%, the company added.
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By GlobalData
