2 Sisters Food Group owner Boparan Holdings has rebounded into the black following several years of losses, off the back of a major restructuring of the business.
A £28m pre-tax loss in its previous accounts swung by £63.5m into a £35.5m profit before tax for the year to 27 July 2024, reported newly filed accounts by the food manufacturing giant.
Profits were up due to “operational improvements in the UK poultry and meals and bakery businesses”, Boparan said, highlighting “the benefits from investments made in improving line efficiency”, particularly within its British poultry operation.
This came despite ongoing challenges from inflation, the supplier added, noting how it had “continued to protect itself against these increases through pricing pass-through mechanisms supported by our customers”.
Turnover rose by 0.5% to £3.05bn, driven by volume growth in its UK businesses, which partly offset the year-on-year impact of disposals in the previous financial year, such as the sale of Portumna Pastry to the Boparan Private Office in 2023.
‘Rightsized’ for growth
As a result of its improved financial performance, net debt fell by £39.1m to £487.1m, Boparan said. And after it offloaded its European poultry operation last September, like Portumna, to founder and president Ranjit Singh Boparan’s private office, the business was now “rightsized”, “reshaped” and set for future growth.
Boparan pointed to its refinancing of the business last November, with a new £390m five-year bond and an £80m revolving credit facility, as a key example of this renewed stability. It hailed the company’s ongoing resilience “and ability to respond to the unprecedented challenges it has experienced over recent years”.
It added the supplier’s Next Gen strategy – which will see the business transition to higher-welfare chicken reared at lower stocking densities by 2027 and achieve net zero carbon emissions by 2035 – was making “solid progress”.
Boparan would additionally be donating 50 million meals 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,” it said.
“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,” said CFO Paul Friston.
“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.”
Ranjit Singh Boparan said the results showed “we have momentum as we continue to transform the business”.
He added: “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 Gen 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.”
Singh raises £140K in marathon effort
It comes as Ranjit Singh Boparan raised £140,000 for four charities across the UK and abroad last weekend after completing the London marathon. First-time entrant Singh completed the course in the face of rising temperatures in London on the day.
The money raised will be split between four charities close to his heart: The British Heart Foundation; The Boparan Charitable Trust; Martin House Hospice; and Assist Resettlement & Renaissance.
“The challenge was not just about crossing the finish line, it was about making a real difference in the lives of those who need it most. Every donation, big or small, will help these charities continue their vital work.”
His charity page remains active and well-wishers can still make a contribution to boost funds further.
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