FDBusiness.com

Boporan Warns of Margin Erosion in Second Half

 Breaking News
  • Ebro Expands in Pasta With €130 Million Deal Spanish food group Ebro has agreed to acquire a 70% stake in Bertagni 1882, the Italian premium fresh pasta producer, for €130 million. With production plants in Vicenza and Avio in Italy, Bertagni employs 275 people and is known as the oldest brand of filled pasta in Italy. Its gross sales in 2017 will exceed [...]...
  • 100% Green Distillery to Open in Yorkshire A Yorkshire-based gin and whisky distillery is one of only three in England to be run solely on green energy. As England’s smallest and first self-built whisky and gin distillery, Cooper King Distillery will commence production of its juniper-led gin and open its doors to members of the public this spring, the whisky distillation will follow [...]...
  • ULMA Packaging’s Flexible Solution Helps Make Dairy’s Day Dairy Day, a Watford-based specialist in artisan cheeses, has reported a significant increase in production since replacing a manual packing machine with ULMA Packaging Ltd’s TFS 200 Thermoformer – providing the family-run business with the extra capacity it needed to meet the increasing demand from retailers and foodservice customers for its handmade halloumi cheese. Investing in a packaging system is [...]...
  • Wavegrip Introduces New Service WaveGrip, manufacturer of innovative beverage multi-packaging solutions, has launched a dedicated machine manufacturing and engineering support service. Combining all WaveGrip automation, engineering and global servicing capabilities, including its OEM partners, the new WaveTec service will ensure WaveGrip Applicators continue to deliver the best performance to support companies’ multi-packing needs. WaveTec will also give all WaveGrip customers [...]...
  • Riggs Autopack Ltd – British Manufacturer of Depositors & Filling Machines For Food Production Riggs Autopack is a British manufacturer of high quality depositors and filling machines, transfer pumps and automatic conveyor filling lines. They are a UK market leader with an excellent reputation and supply their equipment to the food production industry. Their Model 1000 volumetric depositors and filling machines are one of the most precise and hygienic on [...]...

Boporan Warns of Margin Erosion in Second Half

Boporan Warns of Margin Erosion in Second Half
March 21
11:41 2013

Having just completed the acquisition of VION’s poultry and red meat businesses in the UK, Boparan Holdings, the holding company for 2 Sisters Food Group, has reported a 5.4% increase in like-for-like sales for its second quarter ended 26 January 2013, despite the demanding trading conditions. However, the horsemeat scandal is expected to impact sales of the group’s ready meals and coupled with the VION acquisition, which is currently loss making, these factors will dilute profit margins during the second half of the group’s financial year.

2 Sisters, which employs over 18,000 people and has annual sales of over £2.3 billion, operates from 42 sites in the UK, Ireland, India and Europe, supplying poultry, ready meals, sandwiches, salads, pies, pizza, fish, puddings, cakes and desserts, and biscuits. Its brands include Fox’s biscuits and Goodfella’s pizzas.

Second quarter group operating profit, before restructuring costs, was £27.3 million (up from £25.6 million in Q2 of 2011/12) but after currency factors there was an overall loss before tax of £7.7 million. The operating profit margin at 4.4% was down slightly on the prior year figure of 4.5%

During the second quarter of its 2012/13 financial year, 2 Sisters’ chilled business performed solidly but trading at its branded business remained tough with a recovery in frozen foods offset by a decline in biscuits.

“We made good progress to complete our phased recovery of higher feed costs by the end of Q2, but forward feed prices remain volatile,” comments Ranjit Singh, chief executive of 2 Sisters Food Group. “Looking forward, we also expect considerable volume reduction in our ready meals business during the second half year following media coverage of horsemeat issues, which have impacted the food industry as a whole and beef related ready meals in particular. As a result, we remain cautious on the outlook, with continued inflation and competitive trading conditions in a tough economic environment, alongside the dilutive effect of our VION acquisition. We will need to invest with our customers to maintain sales growth for the remainder of our financial year.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 19, 2018International Green Week
  • January 20, 2018Sigep Rimini
  • January 24, 2018International Bulk Wine and Spirits Show (IBWSS)
  • January 28, 2018ProSweets Cologne (Int'l Sweets and Biscuits Fair)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements