Earnings growth in Boparan Holdings' poultry businesses in the United Kingdom (U.K.) and European Union (EU) have driven the improvements in sales and profitability of the company in the last quarter.
Compared to the same period of the previous fiscal year, Boparan Holdings has reported profit up by 19.0% to GBP21.9 million (US$27.5 million). Among other businesses, the holding company includes 2 Sisters Food Group, which the largest poultry meat company in the U.K., as well as other food businesses.
This improvement in like-for-like Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was the first increase to be achieved by the company for more than two years. Like-for-like sales for the quarter were up by 1.2% to GBP663 million year-on-year.
Sales and EBITDA growth were driven by the firm’s core businesses, and offer evidence that 2 Sisters’ turnaround actions are taking hold, according to CEO Ronald Kers.
“There are still substantial challenges the business faces, but these results do represent an important first step in demonstrating that we are stabilizing the Group and making sure we follow through with the right set of actions to deliver growth,” he said.
Despite the challenges, Kers highlighted “encouraging signs” in the firm’s Protein and Chilled businesses, and that changes in operational planning capabilities are particularly beginning to benefit its U.K. poultry operation.
Margin improvement remain a continued focus for the firm, and the next phase of changes for its U.K. poultry business is currently under consultation with the workforce affected.
In recent weeks, 2 Sisters announced its intention to close its processing plant in Witham, Essex, U.K., and invest in other facilities as part of its strategy to “become the No. 1 poultry-plus business in Europe,” according to Kers.
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. The company also has turkey processing operations.
