Boparan Holdings, parent company of U.K. poultry company 2 Sisters Food Group, is actively carrying out a turnaround initiative to regain profitability, and it showed progress in those efforts as it narrowed its net debt during the first quarter of its 2018-2019 fiscal year.
For the period, which concluded on October 27, the company reported a net debt of GBP673.1 million (US$852 million), an improvement of more than 18 percent, when compared to the same quarter of the 2017-2018 fiscal year.
“We have made it clear that the size of the turnaround challenge is substantial, and to achieve success on this scale will take time. We have diagnosed the fundamental operational issues and the management team know what levers to pull to drive change through the organization,” Ronald Kers, CEO of 2 Sisters Food Group, said in a press release.
“Positive momentum is building and we are implementing improvements, both with ‘low hanging fruit’ and longer term strategic objectives. We are in stabilization phase with our poultry business, and it is critical we make further operational efficiencies and improve margin as the financial year progresses to address ongoing input cost inflation. We will also make targeted investments that deliver real, tangible financial returns, for example in our Polish poultry and Meals businesses. We have successfully launched a number of products which will drive future growth, most notably Fox’s Milkshake Party Rings and several new ready meal lines.”
Kers added that “it will take time before we see green shoots of growth,” but added that the company is focusing on its core with a new team, and has a realistic plan of action to be a consistently performing and profitable business.
Kers became the CEO of 2 Sisters Food Group on June 1, succeeding Ranjit Signh Boparan, who departed that position to focus on his role as president of Boparan Holdings.
