The 13 weeks to April 29 was “tough” for Boparan Holdings, said 2 Sisters’ ceo Ranjit Singh, although total and like-for-like sales were both up. Total sales increased 4.8% compared with the same period last year, to £821.9M, while like-for-like sales were up 3.1% to £809M.
Despite the challenging market – which included bird flu outbreaks in Poland and the Netherlands – Boparan Holdings was making positive steps toward overall improvements, it said.
“This was a tough trading quarter for the business, but there are clear signs in the top-line performance that we are pursuing the right strategy to deliver sales and margin performance improvements,” said Singh.
“The competitive landscape remains challenging, and our sector faces currency fluctuations which have brought about higher input prices. In addition, our European poultry export business in both Poland and the Netherlands has been affected by avian influenza outbreaks on the continent, and we have experienced some restructuring costs elsewhere in the business.”
Boparan’s Protein division reported a 4.8% rise in like-for-like sales to £566.8M. The division was progressing well, Singh said, although operating profit fell 25% to £6.7M.
Currency fluctuations affected the processor’s Branded division, as operating profit dropped 26% to £7.3M. The Chilled division reported flat like-for-like sales of £148M, while the loss of a chilled pizza contract meant operating profit fell 10% to £2.6M.
Boparan Holdings said it expected further market challenges in its final quarter of the year. But, price recovery, efficiency and investment strategies should help to counter its effect, it said. The company had already begun to see the benefits of action against inflation, it added.
“We see no major changes to the external environment for the rest of the financial year,” said Singh. “We remain resilient, adaptable and as committed as ever to deliver for our customers.”