Food manufacturer 2 Sisters Food Group has announced quarterly profits despite recent tough trading conditions and uncertainty caused by price deflation, currency headwinds and the imminent EU referendum.
2 Sisters’ parent company Boparan Holdings reported an increase in retained profit from £2.9m to £3.4m in the quarter to April 30 2016 despite volatile markets. Like-for-like sales slipped 0.9 per cent, although total sales rose 0.6 per cent to £784.5m, up from £779.7m for the same period in 2015.
2 Sisters Food Group was founded in 1993 by Ranjit Singh at the company’s first site in West Bromwich. It now has its headquarters in Birmingham and two Sandwell sites – Smethwick and West Bromwich – as well as operations across the East Midlands, Yorkshire, the North East, North West, Wales, Ireland, Scotland, Devon and Norfolk.
The group is one of Europe’s leading food manufacturers with a strong presence in poultry, red meat, chilled and frozen food categories. Its customers include Aldi, Asda, Co-op, KFC, Lidl, Marks and Spencer, Morrison’s, Sainsbury’s, Tesco and Waitrose.
In the group’s protein division quarterly like-for-like sales and operating profit dipped due to price deflation and a fall in sales of red meat but a spokesperson for the company vowed to “cement” its position in the market by offering new products.
However, its chilled business division increased like-for-like sales by 2.3 per cent and sales in its branded division were up by 4.5 per cent due to the release of new ranges of one of its well-known products, Fox’s Biscuits.
The group is continuing its investment programme, including a £6m extension and equipment upgrade at one of its Nottinghamshire sites and a major upgrade of its Scunthorpe poultry factory.
Since the quarter finished parent company, Boparan Ventures, has also completed the purchase of the Giraffe restaurant chain from Tesco. The 54 restaurants will be operated through the group’s subsidiary Boparan Restaurant Holdings.