Profits drop for 2 Sisters Food Group
The parent company of 2 Sisters Food Group, which was due to close its Smethwick poultry plant this month, has seen a big drop in profits.
In the three months to April 29 Boparan Holdings saw pre-tax profits drop £10.9 million to £9.4m.
Its European poultry business has also been hit by bird flu outbreaks.
The Birmingham-based food manufacturing group's total sales were up 4.8 per cent to £821.9m for the quarter.
Ranjit Singh Boparan, chief executive of 2 Sisters Food Group, said: "This was a tough trading quarter for the business, but there are clear signs in the top line performance that we are pursuing the right strategy to deliver sales and margin performance improvements.
“The competitive landscape remains challenging and our sector faces currency fluctuations which have brought about higher input prices. In addition, our European poultry export business in both Poland and the Netherlands has been affected by avian influenza outbreaks on the continent, and we have experienced some restructuring costs elsewhere in the business.
“Our protein footprint programme is progressing well and will ensure we have the right product, in the right location at the right time.
"Latest developments include expanding our cutting facilities in Scotland and reconfiguring our supply chain to achieve a leaner structure.
"Following consultation, we have announced the closure of one of our Birmingham sites. We have also strengthened our commitment to reduce poultry waste by agreeing a three-year surplus supply contract with Crawshaws Butchers."
The group has appointed a new chief financial oficer. Richard Pike officially joins the business on July 17 and will join the Boparan Holdings board. He most recently worked for Associated British Foods as managing director of British Sugar.
The poultry plant in Bevan Way, Alpha Business Park,Smethwick, which employed 630 people was due to shut on June 23.
Some 250 of the staff took voluntary redundancy with others redeployed to other group sites.
2 Sisters also employs around 1,500 people at poultry processing plants in West Bromwich and Wolverhampton.
The group owns a number of food brands including Goodfella's Pizza and Fox's Biscuits
The Smethwick plant opened in 1996 and supplied retailers and other manufacturers with chicken portions. All of the work at the plant has been relocated to other UK sites.
