Strong Q1 results for 2 Sisters Food Group
2 Sisters’ holding company, Boparan Holdings, has announced strong sales momentum in its first-quarter trading, with revenues of £565m.
Total like-for-like sales were up 10% in the 13 weeks to 29 October 2011, with poultry showing a particularly good performance, up 13.2% despite the recovery of higher feed costs during the quarter, which had impacted margins.
Chilled sales were up 9.6%, which the company said was driven by a strong offering on ready meals, sandwiches and salads, and pizzas.
CEO Ranjit Singh said: “The first quarter of our new financial year has seen a solid start, despite the continued challenging trading and consumer environment. We have recorded strong sales growth as we work closely with our customers to deliver value to the consumer. The second quarter is progressing in line with our plan and we expect our Christmas performance will have been solid, albeit in an increasingly promotionally driven trading environment which will constrain Q2 margins.”
The integration with Northern Foods, which 2 Sisters bought in April 2011, was said to be ‘on track’, and the company also announced its intention to return chilled and bakery business Brookes Avana, which it acquired in December, to profitability within the next 12-24 months. It said it was an excellent strategic fit with 2 Sisters and, despite reduced sales and trading losses in 2011, it had a good track record of delivering high-quality products.
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