Profits fall as 2 Sisters faces 'very tough trading'

His 2 Sisters Food Group, which processes a third of all the chickens eaten in the UK, employs 23,000 across the UK and Europe, including plants in West Bromwich, Wolverhampton and Smethwick.

Its parent company Boparan Holdings said this morning that revenues remained strong a tough market, with total sales up 5.2% to £833 million the 13 weeks to January 18 – the second quarter of its financial year.

Like-for-like were up sales up 2.6% to £812.8m but pre-tax profit slumped to £12.3m from £20.1m at the same point a year ago.

The company said it had accelerated its efficiency and cost-cutting programmes to counter the pressures from the weakness of the pound and rising inflation.

Ranjit Singh, 2 Sisters's chief executive, said: “Our results reflect the very tough trading environment we face.

"The market is as competitive as ever and currency fluctuations have brought about higher input prices. It is unsurprising that this has put a margin squeeze on a lot of businesses, including our own.

“However, there is underlying positive momentum across the business, as we have seen over the past four trading quarters. Sales are rising, and we are well positioned to grow with our customers in new markets."

He added: “Our Brands have been more acutely affected by ingredient inflation. However, both Frozen and Biscuits have seen robust sales figures with new contract wins and, like the rest of the business, both have implemented major efficiency drives."

The group owns brands including Goodfella's and San Marco frozen pizza and Fox's Biscuits.

Mr Boparan added: “The market will remain challenging, but as we continue to create a good environment for the long-term sustainability of the business, remain resilient and deliver for customers, our Better Before Bigger strategy will achieve our long-term ambitions."

The company added: "EU exit uncertainty, as well as cost pressures and the tough grocery market are likely to remain for the foreseeable future."