2 Sisters reports loss, despite rise in sales
2 Sisters Food Group has announced a £143.3 million loss for the 53 weeks ending 2 August 2014, although total sales were up 18.5% and protein performed strongly.
The company said the loss “was adversely affected by restructuring costs and other exceptional items amounting to £101.1m (2013: £25.5m) and financial charges of £62.4m in relation to refinancing the group’s debt capital”.
However it also announced a number of positives: “Total sales have increased to £3.4bn (up 18.5%). Like-for-like sales are up 2.4% in tough trading conditions.”
Like-for-like operating profit increased by £5.4m to £97.3m (up 5.9%), and 2 Sisters announced a strong sales performance in protein, with sales up 35.4%, driven by acquisition, business gains and inflation.
Ranjit Singh, CEO of 2 Sisters Food Group, said: “Our like-for-like sales and operating profit performances are satisfying after a transformational year for our business.
“We have made a series of tough decisions and taken action throughout the year to ensure we build a strong foundation for our business, which will set us up for success in the longer term. Investing in growth and lowering our cost base were the key themes of our operating focus over the past 12 months.
“In protein, we completed the investment and consolidation of cooked meats at Cambuslang following the closure of Haughley Park in H1, although we still have efficiency improvements to make. We progressed our cost reduction plan in Scotland, consolidated production at Coupar Angus and exited the Letham poultry site.”
2 Sisters also reported a decrease in chilled and branded sales for the year, by 8% and 3% respectively.
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