Sales and profits rise for 2 Sisters owner
The parent company of 2 Sisters Food Group has seen sales and profits increase during the first quarter of its financial year.
Birmingham-headquartered Boparan Holdings, which has chicken processing factories in West Bromwich and Wolverhampton, has reported like-for-like sales of £662.7 million for the 13 weeks to October 26 2019, up from £658.6m in the same period in 2018.
Its like-for-like EBITDA – a measure of profits not including interest, tax, depreciation and amortisation – jumped by more than 42 per cent from £15.8m to £22.5m.
The company said its UK poultry operation was seeing further evidence of improvement.
Meanwhile, there was an improved performance in its ready meals business, and its bakery division was benefitting from commercial initiatives.
Net Debt at the quarter-end was £581.9m, which represents a £49.5m improvement in the previous quarter.
2 Sisters Food Group chief executive Ronald Kers said: "Our new financial year starts with another quarter of double-digit like-for-like earnings growth for the group, providing more evidence that the positive actions we have made in previous quarters are paying off.
"Turnaround outcomes are being realised and we’re seeing improved margin performance and encouraging performance in all our divisions.
"Recovery across our group continues and the unrelenting focus on cost control, reduction and cash generation is bringing more positive results and gives the business a strong platform for this new financial year.
"Our UK poultry operation is seeing further evidence of turnaround, our EU business is expanding for the future, and all divisions have seen EBITDA benefits as a result of positive commercial initiatives, efficiency improvements and overhead reductions.
"Our priorities remain improving core business performance, strengthening the balance sheet, and focusing on cash generation."
