2 Sisters Food Group Limited has reported a 10.2% rise in turnover to £1.78bn for the 52 weeks ended 26 July 2025, according to its latest annual report and financial statements filed at Companies House.
The company, a wholly owned subsidiary of Boparan Holdings Limited, said all turnover related to the processing and manufacture of poultry products. UK sales accounted for £1.75bn of turnover, with £18.8m from the rest of Europe and £7.3m from other markets.
See also: 2 Sisters accelerates low-carbon poultry feed strategy with £50m UK agriculture investment
Profit before tax increased to £84.6m, up from £54.6m in the previous year, while profit after tax rose to £71.7m from £46.5m. Operating profit before exceptional costs increased to £129.7m, compared with £95.5m in 2024. Gross profit margin improved from 14.9% to 16.4%.
The directors said turnover growth reflected higher volumes and an improved sales mix, which more than offset the pricing impact of lower feed costs. They also cited a pricing benefit from an increased proportion of higher-welfare sales.
The filing said 2 Sisters had continued to face inflation, particularly in labour and overhead costs, but had protected itself through pricing pass-through mechanisms negotiated with customers. It said the annualised cost of National Living Wage and National Insurance changes following the Autumn Budget would have been around £60m had these not been recovered from customers. Feed costs were, on average, 5% lower than the previous year, with the benefit passed back to customers through the same mechanisms.
Higher-welfare production
A key operational development during the year was the company’s transition to higher-welfare supply. The accounts said that, as the business exited the year, an average of 80% of sales met the higher-welfare standard. However, the company also warned that the move to lower stocking densities means 20% more space is required to grow the same number of birds, adding that there is an industry shortage of supply at a time when demand is high.
The business linked improved profitability to better balancing of supply and demand, as well as investment in new equipment that increased automation and efficiency. The accounts show tangible fixed asset additions of £18.9m during the period and capital commitments of £12.8m at year-end, related to plant and machinery.
Net liabilities reduced to £323.4m from £395.1m, while net current liabilities fell to £424.2m from £501.1m. The company said the net current liabilities position was driven by historical intercompany funding, adding that its parent company provides financial support and will continue to do so while the company remains within the group.
The annual report also detailed a related-party transaction involving 2 Agriculture Growing Limited, formerly known as Hook 2 Sisters. After the year-end, on 31 July 2025, 2 Sisters Food Group sold its 50% interest in the chicken-growing joint venture to 2 Agriculture Holdings Limited for £1, alongside the waiving of a £3.25m loan from the joint venture. The filing said the investment value and loan value were written down to nil in the period to 26 July 2025.
