Boparan Holdings, the parent company of UK firm 2 Sisters Food Group, has reported second-quarter losses of more than GBP7m (US$10.6m) and said it remains cautious about trading conditions.
In the 13 weeks ended 26 January, the company made a loss before tax of GBP7.7m compared to a profit of GBP16.8m last year. Profits were hit by the falling pound and the impact of restructuring costs across the group.
Group operating profit, before restructuring costs, edged up to GBP27.3m from GBP25.6m in the prior year.
The company, which supplies own-label chilled foods and poultry, as well as brands like Fox’s biscuits, to UK retailers, said group like-for-like sales climbed 9.6% to GBP626.5m. Like-for-like sales were up 5.4%.
CEO Ranjit Singh said 2 Sisters had delivered a “solid” performance in the quarter, despite the “tough and competitive” market conditions.
Looking ahead, however, the company said it remains cautious on the outlook.
“We expect continued food commodity inflation, volatile feed prices, high levels of promotions and considerable volume impact in the ready meals sector during the second half, following the media coverage on horsemeat,” it said.