Annual profits up 61pc for 2 Sisters

In the 12 months to August 1, Boparan Holdings reported sales up 1.8 per cent to £2.46 billion.

For th4 final quarter of the year sakes grew 6.4 per cent to £641.1m with profits up 94.4 per cent to £34.4m as it delivered on its turnaround strategy with the improvement driven by UK poultry and meals performance.

2 Sisters has its headquarters in Birmingham and has chicken processing factories at West Bromwich and Wolverhampton.

The full year results reflect substantial improvements in the core business and the strong execution of its strategic plan with profits improving across all divisions

Like-for-like sales in the poultry division grew by 2.3 per cent.

Ronald Kers, chief executive of Boparan Holdings, said the fourth quarter results showed a continued acceleration of its financial performance.

"Like-for-like profitability and overall margins are significantly better than last year, despite a negative impact from Covid-19 in the quarter. The full year picture shows further evidence that the turnaround actions implemented over the past two years are translating into sustained financial results. We still see much upside in our business and we will continue our focus on margin growth, becoming a more efficient company while further improving cash generation.

"Besides the financial uplift, we are making significant progress in how we operate, which is being well recognised by customers, suppliers and other stakeholder groups. Covid-19 impacts will undoubtedly continue, but our foundations are now well-set for longer-term sustainable growth.”

Ranjit Singh Boparan, president of Boparan Holdings, added: “I am pleased with our resilient financial performances through what has been a challenging and eventful financial year. As an overall team we have delivered a strong set of results in the face of a pandemic and I would like to thank all of our colleagues for their continued hard work and dedication. We look forward to refinancing the business, and the board and I look to the future with excitement and confidence.”

In June and August, to prevent any spread of the virus, the company temporarily suspended operations at ita factories in Llangefni in Anglesey and Coupar Angus in Scotland and worked collaboratively with local public health authorities. Both factories successfully resumed operations approximately two weeks after suspension.

The company’s performance in the first quarter of 2020-2021 to the end of October saw a larger impact relating to Covid-19.

The results were adversely impacted by a combination of the temporary closure of the Coupar Angus factory during August; weaker sales during the period driven by the Government’s Eat Out To Help Out initiative, and continued lower sales prices into the food service and wholesale poultry sectors in Europe.

The group but anticipates a like-for-like profits growth of 20 to 30 per cent for the quarter.