2 Sisters parent company posts growth in challenging year
The group reported a 6.4% increase in like-for-like sales to £641.1m in the 14 weeks ended 1 August 2020, compared to the 13 weeks ended 27 July 2019. Like-for-like profit in the fourth quarter was also up 94.4% to £34.4m compared with the previous year.
Full-year sales for the business grew 1/8% to £2.46bn, while profit – before depreciation, amortisation and pension scheme administration cost – rose 68.8% to £106.5m.
Boparan attributed strong sales and profit growth on its successful implementation of its operational turnaround plan and a continuation of the improvements achieved in the previous twelve months.
Turnaround plans
Last month, 2 Sisters secured a £475m bond and an £80m revolving credit facility, representing a successful refinancing of the business and enabling it to boost financial performance and generate further cash.
Commenting on the results, Boparan Holdings chief executive Ronald Kers said: “The full-year picture shows further evidence that the turnaround actions implemented over the past two years are translating into sustained financial results. We still see much upside in our business and we will continue our focus on margin growth, becoming a more efficient company while further improving cash generation.
“Besides the financial uplift, we are making significant progress in how we operate, which is being well recognised by customers, suppliers and other stakeholder groups. COVID-19 impacts will undoubtedly continue, but our foundations are now well-set for longer-term sustainable growth.”
COVID-19 impact
Boparan’s outlook for the first quarter 2020/21 was impacted by the outbreak of COVID-19, with results expected to be adversely affected by the closure of its Coupar Angus site in August, weaker sales during the period driven by the Government’s ‘Eat Out To Help Out’ initiative and continued lower sales prices into the food service and whole sale poultry sectors in Europe.
President Ranjit Singh Boparan added: “I am pleased with our resilient financial performances through what has been a challenging and eventful financial year.
“As an overall team we have delivered a strong set of results in the face of a pandemic and I would like to thank all of our colleagues for their continued hard work and dedication. We look forward to refinancing the business, and the Board and I look to the future with excitement and confidence.”
Meanwhile, earlier this year, 2 Sisters Food sold part of Fox’s Biscuits to 'a Ferrero-related company' in a £246m deal.
