Sales up at 2 Sisters but losses widen

The group's holding company, Boparan, reported operating profit up by £4 million to £19.4m, but its loss after tax rose from £8.2m a year before to £28.6m as it closed two plants and invested in capacity elsewhere.

Sales were up 6.1% to £811.4 million for the quarter with like-for-like sales up by 2.4% for the Birmingham-headquartered group, which has chicken processing plants in Smethwick, West Bromwich and Wolverhampton.

Chief executive Ranjit Singh Boparan, said: "We have delivered an encouraging set of results with good top line sales growth and improved profitability in line with our expectations.

"We are seeing the benefits of actions taken to improve profitability across our three divisions and are working with our customers to build a platform for future growth."

Mr Boparan said the group was investing in capacity in its existing sites to drive efficiency and investing in innovation to provide great food at great value.

"This will drive long term growth with our customers and help build a bigger and better business," he added.

The after tax loss was down to high levels of investment and the cost of closing plants in other parts of the country.

2 Sisters is exiting the loss making salads and cakes businesses. It is also restructuring its Scottish poultry business with the exit of the Letham site and redeveloping at Coupar Angus.

The group expects to complete capacity investment and consolidation of cooked meats at Cambuslang by the year end following Haughley Park closure in the first half of the year.