Boparan Holdings Limited, the parent company for 2 Sisters Food Group, has announced its consolidated results for the 13 weeks ended 29th October 2016.
The results reveal the chilled and branded divisions are reporting operating profit improvements with total sales up 5.1%, like-for-like up 2.4% to £797m and operating profit up 11.9% from £17.7m to £19.8m.
Ranjit Singh, 2 Sisters Food Group CEO, said: “The positive momentum we saw across the group in our last financial year continues in our quarter one results, but we expect strong headwinds in 2017 and the business is taking action now to prepare for these challenges.
“The market remains very difficult following the uncertainties around the UK’s decision to leave the EU. Currency-driven inflation and the price-pressured retail grocery market will make next year one of our toughest.
"Our investments will unlock cost efficiencies and help accelerate our growth programmes across the group. Running parallel with this, we are focusing strongly on a ‘cost out’ and efficiency culture throughout the organisation, with some significant benefits already delivered.
“Our protein footprint programme progresses at pace and the expanded capabilities at our Scunthorpe and Derby sites will enable us to deliver more volume and extended product offerings in Added Value Protein in 2017. Our red meat division is restructuring to improve efficiency and reduce its overhead base in order to remain competitive.”
Singh added that investment projects in the company’s chilled division are on track, supplemented by major product launches for customers, including traditional British ranges and early launches of new Christmas sandwich lines.
He explained that Boparan's brands are working hard to recover ingredients inflation; implementing further overhead restructures and targeted capital investments to drive efficiencies in biscuits, and rolling out energy reduction and waste initiatives at its frozen sites.
Singh concluded: "Our Better Before Bigger strategy underpins our drive to maintain excellence in a cost-conscious operating environment. We are well positioned to negotiate the predicted 2017 headwinds and to ensure we deliver for customers on quality, service and price.”
This story was originally published on a previous version of the Meat Management website and so there may be some missing images and formatting issues.
