2 Sisters to invest £150m in poultry business
The parent company of 2 Sisters Food Group (2SFG) has announced a £150m investment in its poultry business over the coming three to four years, with state-of-the-art technology and changes that would “revolutionise the supply chain end to end”.
The announcement came as Boparan Holdings revealed that sales and operating profits slumped during the fourth quarter of the year.
The poultry processor said like-for-like sales were down 3% to £773.6m and like-for-like operating profit was down 20.3% to £22.8m in the 13 weeks ending 1 August 2015, due to a “tough operating environment”.
The company said its performance was in line with guidance, in spite of continued price deflation headwinds.
Its strategy was to continue to drive for greater operating efficiency and innovation across all areas of the business and the company said there would be a “continued focus on prudent cost control and tight management of working capital”, as well as work to “drive industry leadership in animal welfare”. Deepening and strengthening relationships with major customers was also a priority, 2SFG said.
2SFG said that, in addition to the major £150m investment in its UK poultry business, it would continue to invest in reducing campylobacter.
“Our aim is to build a better business,” said 2SFG chief executive Ranjit Singh. “During 2015 we focused on costs, efficiency, investment, innovation and deepening customer relationships. The operating environment for our industry remains tough, but we have seen a consistent improvement in our performance across all our divisions, with a 17.5% increase in life-for-like operating profit to £22.8m from Q3 to Q4.
“We are making a number of important investments with the aim of providing our customers and consumers with innovative products, better value and reduced waste. Today we can announce that we are launching a major £150m investment programme in our poultry business that will completely revolutionise our supply chain end-to-end. We are aiming to further align our poultry business with the needs of our customers, creating world-class facilities utilising state-of-the-art technology, and driving efficiency.
“We continue to focus on measures to reduce campylobacter, where we have invested £10m to date. Our efforts have been praised by the Food Standards Agency and have won the approval of major customers.
“Our business transformation continues at pace and with a number of investment programmes in place, I am confident we have the right strategy to meet the needs of our major customers, who increasingly demand long-term, dedicated partnerships with their suppliers.”
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