Boparan Holdings, the parent company of 2 Sisters Food Group, has reported an increase in EBITDA of 29% in the fourth quarter of 2019, which it described as a sign its turnaround plan was taking effect.
Like for like sales in the 13 weeks ending 27 July 2019 increased 0.2% to £655.4 million, while like for like profit excluding interest, tax, depreciation and amortization (EBITDA) was up 29% to £25.4 million.
Total sales at the company were down 18.4% during the same period, as the company continued to dispose of non-core assets. It’s Matthew Walker puddings business was sold for £67 million; the transaction completed on 26 October 2019.
Ronald Kers, CEO, 2 Sisters Food Group, said: “These positive results show further growth in like-for-like earnings for the Group. This is more evidence that our plans are coming to fruition and are driving improved performance.
“Our UK Poultry operation is seeing further evidence of turnaround and all divisions have seen EBITDA benefits as a result of commercial initiatives, and efficiency improvements. Our unrelenting focus on cost reduction, control and cash generation has yielded positive results in the quarter, which gives the Group a strong platform heading into next financial year. However, the environment is volatile both in the markets in which we operate and the economy at large. Brexit continues to present substantial uncertainty for all food processors but we are taking steps to ensure our business is fit for the future.
“Since our last update we have announced the sale of our Matthew Walker business for £67m, which represents another major milestone in the delivery of our strategy. Having now repaid the remaining 2019 maturing debt, our priorities remain improving core business performance, strengthening the balance sheet, and focusing on cash generation.”
Earlier this week, 2 Sisters confirmed founder Ranjit Boparan had returned to head up the poultry division, having taken a backseat as chairman a little over a year ago.
