2 Sisters Food Group owner reports resilient performance and positive momentum for future

Boparan Holdings Limited (BHL), the parent company for 2 Sisters Food Group, a leading food manufacturer, reports its latest Full Year Results.

For the 52 week period ended 27^th July 2024

 

2 Sisters Food Group owner BHL reports resilient performance and positive momentum for future transformation

 

FY24 Financial headlines

• Turnover up 0.5% to £3,049m driven by volume growth in the UK businesses partly off-set by the year-on-year impact of disposals in FY23
• Profit before tax of £35.5m up £63.5m as profit recovered due to operational improvements in the UK Poultry and Meals & Bakery businesses
• Net debt of £487.1m reduced by £39.1m largely driven by the recovery in EBITDA
• Leverage at 3.0x is at an historic low

 

Ranjit Singh Boparan, President of Boparan Holdings Ltd & owner of 2 Sisters Food Group, said:

“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 means we are firmly committed to investing in our factories and utilising advanced technologies, helping to grow our core business and supporting our sustainability ambitions.

“These priorities are underpinned by our relentless focus on doing the basics brilliantly and being consistent in the way we operate whilst maintaining discipline in our execution to deliver for our customers and stakeholders.”

 

CFO Paul Friston added:

“This latest set of results shows solid financial progress and a strengthened 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.”

 

Business Performance

Turnover was up 0.5% to £3,049m driven by volume growth in the UK business partly off-set by the year-on-year impact of disposals in FY23. This growth reflects higher turnover in both the UK Poultry and Meals & Bakery businesses driven by higher volumes.

Profit before tax of £35.5m was up £63.5m as profit recovered due to operational improvements in the UK Poultry and Meals & Bakery businesses such as realising the benefits from investments made in improving line efficiency in UK Poultry.

During the year the business continued to see inflation, particularly with regards to labour and other overhead cost increases. The business continued to protect itself against these increases through pricing pass-through mechanisms supported by our customers.

Net debt of £487.1m reduced by £39.1m largely driven by the recovery in EBITDA and resulted in leverage at an historic low of 3.0x.

 

Transforming 2SFG for NextGen

Our Next Generation strategy will ensure we do the right things for our customers, our products, our people and the planet, and marks the start of a new beginning for the Group.

We are making solid progress on our NextGen agenda. This includes goals for achieving net zero carbon emissions by 2035 and ensuring 100% of our chicken comes from higher welfare sources by 2027. In addition, we will be donating 50 million meals by 2035 and funding £20m of initiatives for disadvantaged children through the Boparan Charitable Trust by 2035.

This will be enabled by transforming our footprint including automation, optimising our end-to-end logistics, using digital & AI to accelerate the transformation and strengthening the relationships with our strategic partners in our supply chain.

 

Outlook

Since the year-end, we have successfully exited the European Poultry business. This represents the last major milestone in rightsizing and reshaping the business for future growth.

In November 2024, we refinanced the business with a new £390m 5-year bond and £80m revolving credit facility which gives us the liquidity to invest in our core operations and drive sustainable growth as part of our NextGen strategy.

The solid results in FY24 demonstrate the resilience of the business and its ability to respond to the unprecedented challenges it has experienced over recent years.

 

About 2 Sisters Food Group

Boparan Holdings is the parent company for 2 Sisters Food Group which has its head office in Birmingham. It is a leading food manufacturer with strong market positions in Poultry, Meals and Bakery categories. The 13,500 employees are focused on delivering for their customers.

 

 

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