Boparan prepares for ‘one of our toughest years’
Boparan Holdings, parent company of Holland’s Pies and Fox’s Biscuits owner 2 Sisters Food Group, has reported an 11.9% rise in operating profit to £19.8m in the 13 weeks to 29 October.
2 Sisters chief executive Ranjit Singh said his company was expecting strong headwinds and preparing for “one of our toughest” years .
New premium ranges at the firm’s Fox’s Biscuits brand had helped raise the Branded division’s operating profit by 30% to £10.4m. It had mitigated ingredient inflation costs with cost-to-serve and logistics initiatives, the company said.
Boparan Holdings reported a sales boost of 5.1% to £818.2m in its first quarter, compared with the same period last year. The manufacturer’s Chilled and Branded divisions drove the sales increase, with a 5.8% and 4.9% rise in sales respectively.
The company said it was expecting challenges next year as a result of the UK’s Brexit decision, despite the group’s “positive momentum” in the last financial year.
“We expect strong headwinds in 2017 and the business is taking action now to prepare for these challenges,” said Singh.
But the manufacturer said it was well-placed to tackle the expected challenges.
Targeted investment would help to drive profitable sales and “protect the business in a volatile operating environment”, it added.
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- Ranjit Singh