2 SISTERS Food Group has recorded sales growth in its latest financial results, but a pre-tax loss of £93m.
In the 52 weeks to 30 July, turnover was £1.425bn, up from £1.407bn in the same period a year earlier.
Pre-tax losses were £93m in 2021/22, broadly unchanged from the £95m loss reported in the 2020/21 results.
2 Sisters said the sales growth was down to customer tender wins and new product launches, with gross margins increasing from 6.4% in the previous period to 7.6%.
Rapid increases in inflation in the first half of the group’s accounting period significantly impacted performance. However, performance in the second half improved as a result of a “successful inflation recovery programme”.
The second half also saw the disposal of loss-making parts of 2 Sisters’ poultry operation at its Derby and Sunderland sites.
Pre-exceptional operating losses decreased year-on-year from £44.9m to £29.5m.
One principal risk and uncertainty listed is last summer’s extreme heat which disrupted the firm’s agricultural operation. “The company now seeks to deal with additional issues brought by climate change,” say the directors.
“Periods of extreme weather, especially heat, could result in significant disruption to our agricultural supply base,” they add.
Boparan Holdings Ltd, the parent company of 2 Sisters and a number of other assets, reported a turnover of £2.7bn in the 52 weeks to 30 July, up from £2.6bn in the period earlier. The increase was “entirely driven by inflation cost recoveries in the period”.
There was a swing from a £52.6m pre-tax profit in the year to 31 July 2021 compared with a £33.4m loss in the most recent reporting period.
Its overall poultry division reported sales growth of 9.8% to £2.1bn.
The firm’s European poultry division recorded a strong performance following the re-opening of foodservice outlets post-covid. Selling prices across the European market increased “significantly”.
And, while the war in Ukraine had been “impactful on the wider supply chain, [it had] expanded the local market opportunities for our Polish operation”.