Boparan Holdings Limited, the parent company for 2 Sisters Food Group, manufactures in the branded, chilled and protein categories. Total sales rose 0.6% in the third quarter from £779.7m to £784.5m. Operating profit increased 15.9% from £18.9m to £21.9m, and like-for-like profit margin was up to 2.8%.
2 Sisters chief executive Ranjit Singh said it was an encouraging performance in a tough market. “This is another positive performance, with the progress we experienced in previous quarters continuing and the group improved total sales and operating profit, despite the volatile grocery market, deflationary pressure and uncertainties around the EU Referendum.”
The food-to-go division continued to make progress, Singh said, with more than 30 new product launches, including new ultra-thin premium pizza and deli roll ranges.
In the branded division, which includes Fox’s biscuits, Q3 like-for-like sales were up 4.5% to £91.m and operating profit increased by 35% to £10.4m. “Our investments in quality and new ranges at Fox’s biscuits have helped us deliver another strong performance, with sales and market share up substantially over the quarter,” Singh said.
Fox’s biscuits saw volume sales growth in the quarter against a flat overall market, as well as double-digit growth with key customers. There have been further launches of the new Chocolatey Bar range.
In the frozen division, the Goodfellas brand is also in growth, with market share up 2% in Q3. The division has also won new private-label retailer contracts in pizza, which will start in Q1 2017 and new pastry contracts for major UK retailers that started in this quarter.
The group is also working to tackle its huge debts. In the quarter, net debt decreased £31.3m to £711.0m compared to the equivalent quarter last year.
Earlier this month 2 Sisters signed a new five-year contract with Sheffield-based Gunstones Bakery