2 Sisters Food Group admitted the biscuit market had been “tough”, in its latest set of financial results, published today (18 December).
While it said performance had been steady within the branded arena, it said the biscuit market was highly promotional, impacting profit margins. The group invested in its Fox’s Biscuits brand during Q1, with television, radio and social media campaigns.
The Brookes Avana ready meals and cake business, which was acquired by the food group in December 2011, was “recovering” and focused on growth, said the firm.
In October British Baker reported that Sargents Bakeries was to buy Boparan Holdings’ Avana Christmas pudding business, following approval from the Office of Fair Trading.
The government department accepted Boparan Holdings’ offer to sell one of its Christmas pudding businesses, following concerns raised over loss of competition in the market.
For the 13 weeks to 27 October 2012, 2 Sisters, owned by holding company Boparan Holdings, achieved total sales growth of 9.2%, to £616.7m, in the first quarter of 2012/13, compared to the same period last year.
Operating profit stood at £30.7m, up £3.6m on this time last year.