Boparan Holdings: Full Year 2014 Results

Birmingham / UK. (2sfg) Boparan Holdings Limited, the Parent company for 2 Sisters Food Group, a leading diversified Food manufacturer with strong positions in Protein, Chilled and Branded categories, announces its full year consolidated results for the 53 weeks ended 02 August 2014.

FY 2014 Financial Highlights

. FY-2014 FY-2013 Change
Total sales 3’419.2 million GBP 2’884.6 million GBP +18.5 percent
LFL sales 2’868.7 million GBP 2’801.4 million GBP +2.4 percent
Operating profit 89.5 million GBP 92.2 million GBP (2.9) percent
Ebitda 180.3 million GBP 178.0 million GBP +1.3 percent
Operating profit margin 2.6 percent 3.2 percent (0.6) percent
LFL operating profit 97.3 million GBP 91.9 million GBP +5.9 percent
LFL operating profit margin 3.4 percent 3.3 percent +0.1 percent
(Loss) or profit after exceptional
items, interest and taxation
(143.3) million GBP (33.5) million GBP (109.8) million GBP
Net cash flow from
operating activities (statutory)
79.2 million GBP 150.6 million GBP (71.4) million GBP
Net debt 664.6 million GBP 566.7 million GBP 97.9 million GBP
Net Debt: Ebitda 3.69 3.18 (0.51)

FY 2014 Operational Highlights

  • Total sales have increased to 3’419.2 million GBP (up 18.5 percent) LFL sales are up 2.4 percent in tough trading conditions, with results in line with expectations
  • LFL operating profit increased by 5.4 million GBP to 97.3 million GBP (up 5.9 percent)

Strong sales performance in Protein; pre-exceptional operating profit including share of JV (0.6 million GBP) 69.1 million GBP
Vion integration on track – a number of sites have been consolidated and continue to be reviewed with a new embedded leadership team
Branded continues its turnaround, reporting a pre-exceptional operating profit of 25.8 million GBP
In Chilled, sales were down 8.0 percent reflecting the difficult trading environment and the business exits and a pre-exceptional operating loss of 5.4 million GBP was recorded

  • One-off exceptional items (including factory sales, closures and refinancing costs) have negatively impacted profit for the full year
  • Working capital continues to be tightly managed and with net cash balances of 168.3 million GBP, Net Debt:Ebitda stands at 3.69x, after absorbing financing costs.
  • Group Ebitda is in line with guidance given during the refinance at 180.3 million GBP (2013: 178.0 million GBP)

Ranjit Singh, CEO of two Sisters Food Group, said: «Our LFL sales and operating profit performance are satisfying after a transformational year for our business. We have made a series of tough decisions and taken action throughout the year to ensure we build a strong foundation for our business which will set us up for success in the longer term. Investing in growth and lowering our cost base were the key themes of our operating focus over the past twelve months. In Protein, we completed the investment and consolidation of cooked meats at Cambuslang following the closure of Haughley Park in H1, although we still have efficiency improvements to make. We progressed our cost reduction plan in Scotland, consolidated production at Coupar Angus and exited the Letham poultry site. Our Chilled business announced exit from loss making salads and cakes businesses and we invested in capacity for growth in Meal Solutions and our specialist bakery. Clearly the costs incurred in this exceptional activity have impacted our overall result, but our LFL operating profit performance has improved by a commendable 5.9 percent. We expect the economic environment to remain tough and we will work to deliver quality and value to consumers. We are committed to investing in our Brands, innovation and our people as we take the Group to the next stage of its development».


Boparan Holdings expects the economic environment to remain tough with an equally tough trading environment with our customers. As a result we expect profitability in the next quarter to not be as strong as the comparative period last year. Despite the challenging conditions, we believe we are taking the right actions to improve margin by addressing our cost base, improving the operational effectiveness of our manufacturing sites, whilst making targeted prudent investments throughout the business. We will continue to transform our business by improving efficiency in Protein, driving our Brands performance and stabilising and turning around our Chilled business. By putting our customers at the heart of what we do and consistently delivering quality, service and value, we are well positioned for the future.