Boparan Holdings, the owner of 2 Sisters Food Group, has booked a decline in first-quarter operating profit due to one-off costs associated with factory closures and efforts to integrate Vion’s UK operations.
Operating profit fell to GBP25.5m (US$41.6m) in the 13 weeks to 26 October, down from GBP30.5m last year. The like-for-like operating profit dip was less extreme, falling GBP0.8m to GBP31.3m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company attributed much of the decline to costs associated with its integration of Vion’s former UK business. It also cited the closure of its loss-making Haughley Park poultry facility and the sale of its Letham poultry processing operation. The company has also invested in increasing efficiency at its Coupar Angus facility. Operating profit was further dented by the decision not to raise prices in line with higher input costs.
The company did however book a jump in sales. Boosted by acquisitions, sales grew 43.6% to GBP885.3m. Like-for-like sales rose 8.7%, driven by growth of its protein business. 2 Sisters said it has moved to address issues in its chilled food unit, with an increased level of NPD expected to improve sales in the remainder of the year.
