Boparan Holdings, the parent company for 2 Sisters Food Group, has announced its consolidated results for the 13 weeks ended 30 January 2016.
The company reported like-for-like sales up 0.4% from £797.0m to £800.1m; further quarter-on-quarter progress from £787.9m (Q1).
Operating profit was up £26.4m to £22.1m, like-for-like operating profit rose to £27.1m to £22.8m, and like-for-like profit margin was up to 2.9%.
Like-for-like sales in the Protein division in Q2 were broadly flat at £530.7m (Q2 2014/15: £532.9m). Operating profit was up to £7.1m, compared to a Q2 2014/15 loss of £7.7m.
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 product launches.
The Branded division continues to perform well with Q2 like-for-like sales 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). New ranges at Fox’s Biscuits have helped deliver another strong performance with sales and market share up substantially over the quarter.
In Frozen, sales in pizza are performing well as the firm continues to improve product quality and drive innovation. Goodfella’s Gluten Free, launched into the UK, is now outselling the competition two to one.
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.
“There have been important successes throughout our business with new wins and new product development, with notable achievements across our Divisions. In our Branded business, our commitment to innovation with the roll out of Goodfella’s gluten free pizza in the UK has been recognised by winning Product of the Year 2016, and our brand extensions for Fox’s biscuits have increased market share.'
Singh continued, “Our investment programme is progressing well. In Poultry, we have now identified suitable locations that will help to improve efficiency and delivery, fundamentally changing the supply chain. In our Chilled division, our strategic investment project continues on time and to budget, with capital works at Carlisle and Rogerstone now largely completed. The leasing of the additional site in Derbyshire is also on track with manufacturing scheduled to start later this Spring. This will allow us to facilitate the Protein Footprint Programme quicker and without increased cost.
“The measures we introduced to reduce campylobacter in poultry continue, with innovative factory interventions in Scotland showing very promising early results, and encouraging independent data results for our extensive ‘no thinning’ trials. We have won industry awards for our work, and the Food Standards Agency’s last quarterly review three weeks ago also pointed to further significant progress.'
Singh concluded, “We have the right strategy in place to deliver and help counter the headwinds that we face from factors we cannot control. A relentless commitment to great food, innovation and efficiency, and great relationships with our major suppliers and customers are helping us to succeed. Our focus on costs, efficiency, investment, innovation and deepening customer relationships will remain paramount.”