Turnover increased by 0.5% to £3.05 billion, buoyed by volume growth in the UK market. This growth was partly offset by the impact of disposals from FY23. Both the UK poultry and meals & bakery sectors contributed to this increase, driven by enhanced volumes.
Operational improvements in the UK poultry and meals & bakery divisions, including the benefits gained from investments in line efficiency, resulted in profit before tax surging by £63.5 million to £35.5 million, up from a loss of £28 million in 2023.
While inflation has posed challenges—particularly regarding increased labor and overhead costs—the company has effectively mitigated these effects through pricing pass-through mechanisms supported by its clientele.
Reduction in Net Debt
The company successfully reduced net debt to £487.1 million, a decrease of £39.1 million. This reduction was primarily driven by an improvement in earnings before interest, taxes, depreciation, and amortization (EBITDA), leading to a leverage ratio at a historic low of 3.0x.
Ranjit Singh Boparan, President of Boparan Holdings and owner of 2 Sisters Food Group, stated: “These results show we have momentum as we continue to transform our business. We have a clear vision for the future, and our strategic priorities are focused on doing business responsibly and leaving a legacy of a better business and a better world for the next generation.”
“Our Next Generation strategy reflects our commitment to invest in our factories and employ advanced technologies, which will help grow our core business and support our sustainability ambitions.”
“These priorities are underpinned by our relentless focus on quality and consistency in our operations, while maintaining discipline in execution to deliver for our customers and stakeholders.”
2 Sisters Food Group experienced a remarkable turnaround in its financial performance.
2 Sisters Financials
The poultry processor reported turnover of £1.6 billion for the 52 weeks ending 27 July 2024, marking a 6% increase compared to the same period last year. This growth stemmed from increased underlying sales due to higher volumes, effectively countering pricing impacts from lower feed costs.
Additionally, turnover benefited from increased trade thanks to the hive across of Amber Foods in the latter half of the year and a £30 million management recharge to Amber Foods prior to the asset transfer.
Notably, 2 Sisters experienced a leap from an operating loss of £15.6 million in 2023 to an operating profit of £95.5 million in the current results. This impressive turnaround was attributed to the Amber Foods hiving and improved underlying profitability, mitigating prior supply and demand challenges.
Furthermore, 2 Sisters benefited from closing its Llangefni factory and investing in new equipment, which increased automation and efficiency.
Total Employment
Total employment rose across the company, with production staff numbers up by 1.7% to 7,737 and administrative staff growing by 2.77% to 777, resulting in an overall total of 8,514 employees.
Paul Friston, Chief Financial Officer of Boparan Holdings, remarked: <i“This latest set of results demonstrates solid financial progress and a stronger financial position, with the Group’s leverage ratio at its lowest level in over a decade.”
“The full-year numbers evidence that the turnaround actions implemented over the past three years are translating into sustained financial results. We see further opportunities in our business as we focus on becoming a more efficient company while continuing to improve cash generation.”
In addition, last month, Boparan Holdings received clearance to complete the acquisition of a poultry feed mill site in Norfolk.