UK-based 2 Sisters Food Group has reported a decrease in annual profits despite seeing turnover rise over the period.
According to a statement filed with Companies House for the year ended 31 July 2010, the poultry and fish supplier’s net profit declined 3.2% to GBP23.1m (US$36.8m).
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The company’s pre-tax profits fell by 8% to GBP31.2m. Last year’s pre-tax profits were boosted by an GBP8m gain from “income from shares in group undertaking”, 2 Sisters said.
2 Sisters said the increase in feed prices “remains a challenge to the business” and its cost of sales climbed from GBP573.9m to GBP598.7m. The increased costs pushed down the company’s gross profit from GBP75.5m to GBP73m.
However, operating profit rose 12.4% to reach GBP31.6m as 2 Sisters’ administrative costs almost halved. 2 Sisters said its “continued drive to reduce cost and run the company as if it were in a recession” has put it in a “firm position to capitalise on opportunities as and when they arise”.
Turnover rose some 3.6% to reach GBP672.5m.
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By GlobalData2 Sisters’ owner Boparan Holdings acquired UK food maker Northern Foods earlier this year.
