Boparan Holdings, the company behind the UK’s 2 Sisters Food Group, today (21 June) reported a rise in sales and operating profit for the third quarter of its financial year.
The owner of Fox’s biscuits and Goodfella’s pizza, posted sales of GBP784.5m (US$1.1bn) for the 13 weeks to 30 April, an increase of 0.6% on the GBP779.7m in the corresponding period a year earlier.
However, the group reported like-for-like sales of GBP773m, down 0.9% from GBP779.7m in the corresponding period in the last financial year.
The group said its branded division continued to perform well with third-quarter like-for-like sales up 4.5% to GBP91m and the unit generating a 35% increase in operating profit of 35% to GBP10.4m. Boparan said its investments in quality and new ranges at Fox’s Biscuits helped its performance.
In frozen, the group said the Goodfella’s brand continued to grow strongly in the UK with brand share up 2%, following on from the launch of its “best ever” recipe. “The division has won new private-label retailer contracts in pizza which will start in Q1 2017 and new pastry contracts won in major UK retailers that started in this quarter,” Boparan added.
The group’s chilled division saw like-for-like sales increase by 2.3% to GBP148.7m, compared to the corresponding period of the previous financial year, and operating profit up 44% to GBP2.6m, previously GBP1.8m, “driven by improved market share and new product launches”.
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However, like-for-like sales in Boparan’s biggest division, protein, were down 2.6% at GBP533.3m in the same period of the previous financial year. Operating profit was GBP8.9m, compared to GBP9.4m. Boparan said the slight fall was a result of “continuing price deflation, combined with a temporary loss of sales in red meat”.
Ranjit Singh, CEO of the 2 Sisters Food Group, said: “Our investment programme continues at pace. We are investing to improve efficiency and delivery, fundamentally changing the supply chain, and our strategic investment project continues on time and to budget, with a GBP6m extension and equipment upgrade at one of our facilities in Nottinghamshire.”
Earlier this month, Marks and Spencer announced it was moving three private-label contracts from UK fish products supplier Icelandic Seachill with 2 Sisters Food Group, Greencore and Bakkavor each attaining one of the deals.