Boparan Holdings, the parent company of UK firm 2 Sisters Food Group, has reported a loss in its first quarter due to costs from a site closure but saw underlying profits rise.
In the 13 weeks ended 27 October, the company made a net loss of GBP5.1m (US$8.3m) compared to a profit of GBP2m last year. Boparan blamed the loss on GBP12.1m of costs related to the site closure its Leicester site in October.
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However, group operating profit, before restructuring costs, amounted to GBP30.7m, a 13.3% increase on last year. Operating profit margin was “slightly ahead” of the prior year quarter. The firm said its expectation of “broadly flat margins” for its full year remains unchanged.
The company, which supplies own-label chilled foods and poultry, as well as brands like Fox’s biscuits, to UK retailers, said group sales climbed 9.2% to GBP616.7m. Like-for-like sales were up 5%.
CEO Ranjit Singh said 2 Sisters had made a “solid start” to its new financial year, in “challenging” market conditions.
“Despite the tough consumer environment and lapping sales gains made last year, we grew sales during the first quarter as we work hard to deliver food for every meal occasion,” he said. “We expect markets to continue to be challenging and, reflecting our focus on top line sales growth and cash, we will invest where we see opportunities for growth.”
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By GlobalData
