Boparan Holdings: Q1 Results 2015/2016

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, announced its consolidated results for the 13 weeks ended 31 October 2015. Summary:

  Q1 2016 Q1 2015 Change
Total sales 778.3 mio. GBP 806.7 mio. GBP (3.5) percent
LFL sales 787.9 mio. GBP 806.7 mio. GBP (2.3) percent
Operating profit 18.1 mio. GBP 22.0 mio. GBP (17.7 percent)
Operating profit margin 2.3 percent 2.7 percent -40 bps
LFL operating profit 18.6 mio. GBP 22.0 mio. GBP (15.5 percent)
LFL operating profit margin 2.4 percent 2.7 percent -30bps
Profit after exceptional items, before interest and tax 18.0 mio. GBP 22.0 mio. GBP (4.0 mio. GBP)
Retained profit after exceptional items, interest and tax 1.8 mio. GBP 6.1 mio. GBP (4.3 mio. GBP)
Net debt 726.3 mio. GBP 681.2 mio. GBP +45.1 mio. GBP
LTM Adjusted Ebitda 161.5 mio. GBP 174.4 mio. GBP (12.9 mio. GBP)
Net Debt: Adjusted Ebitda 4.5 times 3.9 times 0.6 times


Q1 headlines and Q2 outlook

  • Continued focus on building a «better before bigger» business, progress experienced in Q4 continues into Q1
  • Performance in line with guidance, in spite of continued price deflation and currency headwinds
  • Like-for-like sales down 2.3 percent to 787.9 million GBP; quarter-on-quarter progress from 773.6 million GBP (Q4)
  • Drive for greater operating efficiency and innovation across all areas of the business
  • Continued focus on prudent cost control and tight management of working capital
  • Deepening and strengthening relationships with major customers
  • On track for delivering further improvements in Q2

Investment programme update

Substantial and targeted investments to drive productivity and efficiency across the business over the next three to four years.

Chief Executive’s Commentary

Ranjit Singh, 2 Sisters Food Group CEO, said: «The progress we experienced in Q4 continues in the first quarter as we continue to meet our objective of building a better business. Our focus on costs, efficiency, investment, innovation and deepening customer relationships remain paramount. With the progress we saw in the fourth quarter continuing, we expect to see our hard work bearing fruit as the year progresses».

«We are committed to working in partnership with our customers to provide the food people want to eat at the right price. This has been reflected in the important successes we have achieved in category reviews and new product development, with notable successes for poultry products, red meat, pizzas, wraps and frozen fish. In our Branded business, we have shown our commitment to innovation with the roll out of Goodfella’s sweet and gluten free pizza in the UK, successful new brand extensions for Fox’s biscuits and a range of Disney branded products».

«The measures we introduced to reduce campylobacter in poultry, in conjunction with our customers, have been recognised not only by industry awards and through positive feedback from media and key commentators, but also by the Food Standards Agency which pointed to significant progress in its recent quarterly review».

«The investment in the business we announced in the last financial year is well under way. In poultry, we are already working to implement the 150 million GBP investment programme which will revolutionise the supply chain. In Ready Meals, work has commenced at both Pennine and Rogerstone sites, with the latter due to complete in mid-2016, and we are now leasing an additional site in Derbyshire which will enable us to increase capacity and allows us to facilitate the Protein Footprint Programme quicker without increased cost».

«We have the right strategy, a relentless commitment to great food, innovation and efficiency, and are building great relationships with both our major suppliers and customers» (Image: