Boparan Holdings files third consecutive quarter of growth

The parent company of 2 Sisters Food Group and, more recently Bernard Matthews, Boparan Holdings, has reported its third consecutive quarter of operating profit progress.

In its results for the 13 and 52 weeks ending 30 July 2016, posted on Thursday, 3 November 2016, the food giant reported operating profit improvements in all divisions.

Total sales were up 2.4% from £756.8 million to £775m, with like-for-like sales up 0.8% to £763m.

Operating profit increased an impressive 39.9% from £18.8m to £26.3m, while like-for-like operating profit experienced a 34.6% uplift from £18.8m to £25.3m; the like-for-like profit margin was up to 3.3%.

“We are pleased to report another encouraging performance, with continuing improvements in sales and operating profit,” said Ranjit Singh, 2 Sisters Food Group chief executive.

“The market remains tough with the uncertainties around the UK’s decision to leave the EU, currency-driven inflation and the volatile grocery market still applying great pressures on the food manufacturing sector.

“Our investments will unlock cost efficiencies and help accelerate our Protein Footprint Programme. This is already beginning to deliver as we see our new Derby site producing ready-to-cook chicken for major customers and the £45m refurbishment of our Scunthorpe facility, enabling it to increase volume throughput.”

Overall sales for Boparan’s protein division saw an increase of 0.8% at £542m with operating profit up 25% to £12m.

This was driven in part by the launch of new ranges to two customers for the quarter, as well as the renewal of contracts with customers and securing new business for additional frozen BBQ and Scottish fresh whole birds.

During the quarter Boparan became the sole supplier for a major customer’s rotisserie chicken at the expense of a competitor. Ranges within the division have won numerous awards, including winning a Gold
Award at the World Steak Challenge, hosted by Meat Trades Journal’s sister site GlobalMeatNews.

The chilled division saw like-for-like sales increase by 7.3% to £140m and operating profit was up to £4.5m driven by targeted investments, new contract wins and new product launches.

“Overall, the chilled division is showing encouraging profit growth and our strategic investments here put us in a strong position for the future,” added Singh. “We continue to launch new products and win new business, including a substantial £40m contract for breaded fish and launches in traditional ready meals and soup categories, which will help to offset business which transfers to other suppliers in 2017.”

Overall, the group said it is well-placed to continue to deliver in a new financial year and its commitment to customer partnership, efficiency, innovation and investment to drive profitable sales is paying off.

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