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2 Sisters Food Group parent back in profit

The entrance to 2 Sisters chicken processing plant at Coupar Angus
The entrance to 2 Sisters chicken processing plant at Coupar Angus

The parent company of major UK food processing group 2 Sisters, moved back into the black last year.

Newly published accounts at Companies House show Boparan Holdings achieved a pre-tax profit of £2.7 million in the year to July 30, a significant improvement on the £11.5m loss it reported a year previously.

The Boparan accounts show total group turnover was flat at £3.12 billion in the period, while operating profit before exceptionals came in at £90.5m, a £33.3m uplift on the previous year.

Net debt for the period was down by £10.2m, taking its total liabilities to £706.4m.

The 2 Sisters operaton has three major operational units in Scotland, including a major poultry plant at Coupar Angus, which has long been the town’s single largest employer.

The Perthshire unit performs a variety of functions from slaughtering and portioning of chicken to retail packaging.

Separate filings for 2 Sisters Food Group show the firm achieved sales of £988.9m in the year to July 30, up from £944.7m in 2015.

The unit – which carried an average of 5,270 staff in 2016 – made a loss before taxation of £7.71m in the year, although that figure represented a signfiicant improvement on the £36.31m loss of the prior year.

In his strategic report to the 2 Sisters accounts, director Stephen Leadbeater said the improved turnover within the unit largely reflected an increase in volumes following a transfer of processing from other group companies.

“Gross profit margin has improved significiantly compared to the prior period and reflects a focus on eefficiency, product innovation and the effect of the restructuring programme that was substantially completed in the prior priod, “ Mr Leadbeater said.

“The increase in turnover, improved gross margin and savings in administration costs have resulted in reducing the company’s loss before taxation by £28,592,000 versus the prior period.”

Mr Leadbeater also signed off on the strategic report for the parent company Boparan’s accounts.

He said: “Good progress and performances across the group’s business show that its commitment to customer partnerships, efficiency, innovation and investment to drive profitable sales is continuing to pay off.

“Despite the uncertainty arising from the UK’s decision to exit the EU, continuing cost pressures and thr tough grocery market, the group remains well placed to continue to deliver in its new financial year.”