2 Sisters Food Group focuses on poultry as core business

The latest moves by UK-based 2 Sisters Food Group involve the closure of one of its poultry processing plants, and potential future investment at other locations.

(Roibu, Bigstock)
(Roibu, Bigstock)

Further changes to its poultry footprint in the United Kingdom have been announced by 2 Sisters Food Group. The firm said in a statement that its latest actions were part of an “accelerating transformational strategy to turn around the business.”

To increase its competitiveness, 2 Sisters says it will cut the number of its poultry sites in the U.K., “in order to produce shorter more efficient supply chains.”

“Our stated strategy is to become the No. 1 poultry-plus business in Europe, and for several months now we have been engaged in a strategic review to facilitate our delivery on this, focused on improving execution, reducing cost, and building a better organizational culture,” said CEO Ronald Kers.

A loss-making poultry processing site at Witham in Essex is scheduled for closure, and consultations with the workforce over their redeployment are on-going.

Kers said that the firm will be investing where potential growth is identified, including its poultry business.

In the statement, 2 Sisters confirmed further commitment to its Fox’s Biscuits subsidiary and Gunstones bakery, and the likely future divestment of the Matthew Walker Christmas Pudding business.

It will also repay early the final balance on GBP250 million (US$317 million) of its 2019 bonds. Repayment was scheduled to be completed in July this year, but they will be repaid at the end of this month, according to Kers.

Reporting on its financial results for the second quarter of 2018-19, ended January 26, 2 Sisters Food Group reported a 1 percent increase in like-for-like sales a year-on-year basis at just over GBP684 million. Operating profit was down to GBP400,000 from GBP5.9 million over the same period.

At the time, Kers said the firm’s poultry business had stabilized, and that the business turnaround strategy was “on course.”

In March, 2 Sisters Food Group’s parent company, Boparan Holdings Limited announced it had sold Ireland-based Green Isle Brands and Donegal Catch frozen food business to a consortium of investors. The transaction aimed to further strengthen the firm’s balance sheet, and showed its commitment to its core business strategy.

Boparan Holdings appointed Alex Russo as a new non-executive director earlier this month.

2 Sisters Food Group is the largest poultry meat company in the UK, and the fifth largest broiler company in Europe, slaughtering 317 million broilers annually, according to the Poultry International Top Poultry Companies survey. The company also has turkey processing operations.

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