Boparan Holdings, the parent group of 2 Sisters Food Group, has reported first quarter like-for-like sales up 0.6% to £662.7 million. The firm said the results, which showed the third consecutive quarter of year-on-year growth, showed its turnaround plan, being led by chief executive Ronald Kers, was working.
The period, covering the 13 weeks ending 26 October, showed total sales down 4.4%, partly as a result of selling non-core parts of the business and the closure of the Witham poultry plant, which was completed this October. The results show 42.4% growth in like-for-like EBITDA earnings to £22.5m.
The results showed net debt reduction of £91.2m year on year to £581.9m.
Ronald Kers, chief executive, 2 Sisters Food Group, said: “Our new financial year starts with another quarter of double-digit like-for-like earnings growth for the Group, providing more evidence that the positive actions we have made in previous quarters are paying off.
“Turnaround outcomes are being realised and we’re seeing improved margin performance and encouraging performance in all our divisions. Recovery across our Group continues and the unrelenting focus on cost control, reduction and cash generation is bringing more positive results and gives the business a strong platform for this new financial year.
“Our UK poultry operation is seeing further evidence of turnaround, our EU business is expanding for the future, and all divisions have seen EBITDA benefits as a result of positive commercial initiatives, efficiency improvements and overhead reductions.
“We have concluded the consultation period on the Pennine Meals factory and we will proceed with closure plans prior to the end of our financial year. These are the right actions to take and our priorities remain improving core business performance, strengthening the balance sheet, and focusing on cash generation.”
