Major poultry processor 2 Sisters Food Group saw its losses widen to more than £36.3 million in the past year.
The company, which runs one of Scotland’s largest chicken slaughtering and retail packaging site at Coupar Angus, said its operating performance in the year to August 1 had been impacted by the avian flu outbreak, negative consumer sentiment following the Food Standards Agency campylobacter reporting and deflation in food prices.
In total, the 2015 loss had grown by more than £14m compared with 2014’s return while revenues fell by 4.8% to £944.7m, although the previous reporting period was longer at 53 weeks.
Despite the negative figures, documents lodged with Companies House show 2 Sisters saw an improvement in trading in the latter part of 2015, with an increase in output helping to mitigate some of the wider market issues.
The firm’s core customers are the UK’s major supermarkets and the Coupar Angus facility – which suffered more than 200 redundancies in late 2013 – also produces chicken products under the Elmwood brand.
The company also operated a facility at Letham but it closed in 2013.
The accounts note costs related to the closure of Letham and another site, Haughley Park, were £429,000 in 2015 and other restructuring costs amounted to £610,000.
The 2014 accounts showed restructuring costs of £23.15m, including £8.62m of redundancy and other outgoings related to the closures.
At August 1, 2 Sisters had a total workforce across all of its UK sites of 5,031, up slightly on 2014.
The vast majority of employees are involved in the production process.
The firm is wholly owned by Boparan Holdings, which also published its financial statements for the year to August 1.
The group, which has various food manufacturing interests organised under three main protein, chilled and branded divisions, reported full year turnover down 8.2% at £3.14bn.
Overall, the company made a pre-tax loss of £13.6m in the 12 months period, a significant improvement on the £163.3m loss incurred in 2014.
Operating profit for the year came in at £47.3m, an improvement on the £44.8m achieved 12 months earlier.
The total group loss for the 2015 financial year after tax was £4.9m, down from £143.5m in 2014.
In his strategic report to the accounts, chief finance officer Stephen Leadbeater said the company had evolved.
“The group is constantly reviewing its operational activities to ensure they are conducted in the most efficient manner as the business transformation continues,” Mr Leadbeater said.
In his review of the protein business – which includes chicken production – Mr Leadbeater said sales from the division were down 6.8% at £2.1bn and operating profits before exceptional items were £41.2m lower than in 2014 at £27.3m.
He added: “During the period, the division has focussed on streamlining its production processes and logistics, resulting in the closure of the Eye poultry processing site.
“We continue to focus on improving our UK poultry footprint and recently announced a major £150m investment programme which will revolutionise our poultry supply chain end-to-end.”