Better before Bigger strategy pays off for 2 Sisters Food Group
Boparan Holdings Limited, the parent company for 2 Sisters Food Group, has announced an increase in sales for the 13 weeks ending 30th January 2016.
2 Sisters Food Group CEO
The company has reported a 0.4% growth in like-for-like (LFL) sales from £797 million to £800.1m. Its operating profit has increased £26.4m to £22.1m year-on-year, and LFL operating profit is up £27m to £22.8m while LFL profit margin is up to 2.9%.
2 Sisters Food Group CEO Ranjit Singh commented: “In this quarter we are seeing signs of our strategy to build a better business starting to deliver. I am pleased to report that the progress we experienced in previous quarters continues with improved performances in like-for-like sales and operating profit, despite the fragile grocery market.”
The company’s Branded, Chilled and Protein divisions have shown signs of improvement.
The Branded division’s like-for-like sales are up 4% to £103.7m (Q2 2014/15: £99.7m), with operating profit increasing by £10.5m to £11.3m (Q2 2014/15: £0.8m).
Meanwhile, the Chilled division saw like-for-like sales increase by 0.8% to £165.7m (Q2 2014/15: £164.4m) and operating profit up to £3.7m (Q2 2014/15: £2.6m), driven by record Christmas volumes, re-invigorated ranges and new food launches including barbeque products and frozen whole birds.
Singh went on to say that like-for-like sales in the Protein division during the 13 week period were broadly flat at £530.7m. Operating profit was up to £7.1m, compared to a 2014/15 loss of £7.7m.
The company’s strategic investment is reported to be on schedule, with works at the Carlisle and Rogerstone sites now completed. Its Pennine site building work will be done in phases over two years to avoid disruption.