The parent company of UK food processing group 2 Sisters went into the red last year as its poultry business came under pressure.
Newly filed accounts by Boparan Holdings Limited show the company’s sales rose by £50m to £3.3 billion for the year ending July 28.
However, sales of the protein arm of the company — which includes its large chicken facility in Couper Angus — recorded an operating loss of £16.9m compared to a profit of £38.8m in 2017.
The Birmingham-headquartered group’s total pre-tax loss reduced from £38.5m in 2017 to £5.9m last year.
In his strategic report within the accounts, the group’s chief financial officer Craig Tomkinson said: “The overall turnover increase of 1.5% is driven by a combination of sales price increases owing to commodity inflation alongside growth in sales volumes, which have offset the impact of business disposals.
“Group earnings before interest, tax, depreciation and amortization (EBITDA) of £118.4m (2017: £161.2m) decreased by £42.8m in the period.
“Whilst this was partially influenced by the disposals of businesses during the year, the group has seen a decline in underlying EBITDA of the poultry businesses.”
During the financial year Boparan sold the Goodfella’s pizza brand in a £200m deal to frozen food firm Nomad Foods.
This financial year it has sold other parts of its business to strengthen its cash position.
These include the 2 Sisters red meat business, which was sold to Kepak in July.
The sale of Manton Wood sandwiches to Samworth Brothers completed in January this year after it was cleared by the Competition and Markets Authority.
“The reduction in reported loss before tax is driven by the profit upon disposal of the Goodfellas business, which more than offsets the underlying EBITDA decline during the year,” Mr Tomkinson added.
“Exceptional items include a gain of £30.8m from business disposals during the year.”
Last year 2 Sisters announced an overhaul of its Perthshire poultry plant with an extension to the George Street factory which involves an extra processing area and two loading dock bays.
The Perthshire unit performs a variety of functions from slaughtering and portioning chicken to retail packaging.
rmclaren@thecourier.co.uk