2 Sisters Food Group reports second quarter loss, sales higher
Despite setback, investment plans remain on track
2 Sisters Food Group reported a loss for the 13 weeks ended January 25 of GBP27.5 million (USD45.41 million).
The company's like-for-like sales over the period grew by 3 percent, and total sales, including from the Vion acquisition, were up by 35.3 percent. Like-for-like operating profits at the company before exceptional items stood at GBP15.3 million (USD25.2 million) compared to GBP26.2 million (USD43.2 million) in 2012-13, with improvements in its protein and branded divisions offset by lower profitability in its chilled division.
The company notes that it is investing in growth and in lowering its cost base. Amongst areas of focus in the U.K. are investing in added value capacity in Cambulsang; the closure of its loss-making Haughley Park operations; addressing the higher poultry cost base in Scotland through the exit from its Letham site; and improving efficiency at the Coupar Angus, Scotland, facility; and initiating consultation on the future of its Corby and Avana sites.
Ranjit Singh, 2 Sisters' CEO, commented: "This has been a very challenging quarter, but we delivered a credible performance in Q2, despite the tough and competitive market conditions.
"We delivered to our customers over the key Christmas trading period, but in line with expectations, this impacted profitability in chilled due to the significant investment we made in product launches and disruption costs of new ranges. Protein made good progress with the integration of Vion on plan," Singh said.