Boparan Holdings, the parent company of UK firm 2 Sisters Food Group, has moved into the black in its last financial year when its sales grew ahead of the market.

The business booked a profit of GBP42.5m for the 12 months to 28 July, compared to a loss last year of GBP17m. Operating profit before exceptional items was up 20.6% at GBP108.1m.

Boparan said its EBITDA margin was 8.1%, which it said was “in line” with last year’s pro forma EBITDA margin of 8.2%.

“We expect our margins to remain flat in 2012/13 as we focus on growing sales and cash margin, and recovering inflation,” the company added.

The company, which supplies own-label chilled foods and poultry, as well as brands like Fox’s biscuits, to UK retailers, said sales increased 13.4% to GBP2.34bn. Like-for-like sales, which excludes the group’s acquisition of Premier Foods plc Brookes Avana unit last December, were up 9.5%.

Boparan said “strong contributions” from chilled foods and poultry increased volumes. It said its “branded recovery” continued, with an “improving” performance from its frozen business, which includes the Goodfella’s pizza brand. The biscuits business results were “solid”, it added.

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Commenting on the new financial year, Boparan said it had made a “solid start” but added: “We remain cautious on the outlook, with food commodity inflation remaining high, including recent significant increases in wholesale feed prices impacting Poultry and protein production. We are working closely with our customers to recover these higher input costs – through a phased recovery – as this is essential to secure the viability and supply of the poultry farming and processing capability in the UK.”

The company has secured a new contract to supply poultry products to Sainsbury’s.