Q3 RESULTS 2014 2015

22 June 2015


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, today announces its Q3 consolidated results for the 13 weeks ended 2 May 2015.

Q3 15 Financial highlights


Q3 2015

Q3 2014


Total sales




LFL sales*




Operating Profit**




Operating profit margin %




LFL operating profit*




LFL operating profit margin %




Profit / (loss) after exceptional items, before interest and tax




Retained profit / (loss) for the quarter after exceptional items, interest and taxation




*Like for like (LFL) sales and operating profit are based on the 13 weeks ended 2 May 2015 compared to the prior 13 weeks ended 26 April 2014, excluding the impact of discontinued operations, the impact of exchange translation and include profit / loss on the Group share of joint ventures.

** Operating profit is calculated pre-exceptional items and includes profit / loss on the Group share of joint ventures.

Q3 15 Operational highlights

  • Solid performance which is in line with guidance, in spite of price deflation headwinds
    • LFL sales are up 1.1% to £798.7m
    • LFL operating profit remains flat
    • Profit after exceptional items for the quarter is £16.3m, up £31m on last year

CEO Ranjit Singh comments:

“This is an encouraging performance and in line with expectations. It underlines our commitment to focus on building a better business which leads the food sector and is passionate about putting customers and consumers first.

“We have said targeted investment will be the key to our future growth, and I’m pleased to announce plans for continued investment in our Protein business with further plans being finalised for investment in our Chilled division. These investments will take our performance and ranges to the next level.

“In our UK poultry division, we have reviewed our operational configuration resulting in announced changes that will go a long way to offsetting the external challenges we face in this market.

“In our Chilled business, we are looking at further investment in capacity to enable us to meet our growth ambitions, and we can report a good performance by our Branded division.

“All this activity sets a very solid foundation for future growth of the business.”

Divisional performance


During Q3, the business continued to feel the effects of the Avian Flu outbreaks and negative consumer sentiment following FSA campylobacter reporting. However, like-for-like revenues for the total Protein division are up 0.8% to £560.9m. We now see positive volume trends starting to return in poultry as deflation, passed on to the supermarkets, is starting to filter through to consumers. Our latest market share figures show that we are regaining share in the poultry sector.

Our UK poultry footprint review continues at pace, which will further streamline our operational capacity and provide greater cost efficiencies for the division.


Like-for-like sales continue to improve versus last year to £145.3m, up 1.9%, driven by a strong performance in our ready meals division.

We are in the process of finalising further major investments in ready meals and hope to be able to fully announce details at our next update. With more retailer product launches in the pipeline and further contract gains since the Q2 announcement, the division has almost recovered to pre-horsegate performance levels.


The Frozen division continues to perform strongly and is ahead of last year in the majority of product sectors. Like-for-like revenue now stands at £92.5m, 2% ahead of last year. We are also investing in Frozen pizza capacity to enable new product launches, and we have also secured a contract for more retailer ranges for launch in November 2015.

In Biscuits, we continue to be pleased with our turnaround and have invested further in marketing and promotions. We have recently addressed the cost base of this business across all functions and this along with new product launches will enable us to drive benefits later in the year going forward.

Debt funding and cash flow

Our long term funding includes the senior notes, £250m 5.25% notes due 2019; £330m 5.50% notes due 2021 and €300m 4.375% notes due 2021, which provide the principal funding for the Group. In addition the Group has a £60m Revolving Credit Facility (to 2021) which remains undrawn.

We continue to focus on cash and working capital management, and this resulted in a net cash inflow from operating activities of £9.7m before interest, tax and capital expenditure. This quarter includes a cash outflow relating to a seasonal unwind of working capital amounting to £25.0m (Q2 2014 £21.5m). Our Net debt:EBITDA ratio increased to 4.87 times (Q2 2015: 4.58 times) and Net debt at 2 May 2015 was £742.3m, including cash balances of £96.0m (Q2 2015: Net Debt £702.7m; Cash £127.5m).


The operating environment remains challenging, but we have put in place a strategy that is delivering improved performance throughout the business. We remain cautiously optimistic and expect profitability for Q4 will not be materially different from last year. This combination of prudent cost control, further efficiency gains and targeted investments puts the business in good shape for the future.


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About Boparan Holdings:

Boparan Holdings is the Parent company for 2 Sisters Food Group headquartered in Birmingham. We are a leading diversified food manufacturer with strong market positions in Protein, Chilled, Bakery and Frozen categories. We focus on delivering the highest quality products to our customers at the lowest cost.

Next update: Our Q4 2014/15 announcement will be made on 27 October 2015.