But chief executive Ronald Kers focused on a prospective turnaround going forward
Boparan Holdings, parent company of 2 Sisters, has announced a drop in profits against a ’difficult macro-economic backdrop’ and challenges in its own business.
Like-for-like operating profits dropped 57.8 per cent in the fourth quarter of 2017-18, at £4.9m, making a £59.4m loss after exceptional items, interest and tax.
However, net debt was down 24.3 per cent.
Ronald Kers, chief executive of 2 Sisters Food Group, said the results reflected the difficult macro-economic backdrop and challenges it had faced in its own business.
“Against this backdrop we have a clear strategic plan which we are executing at pace to improve business performance.”
He said they were focused on addressing the core UK and European poultry operation, with the high level of non-cash exceptional costs reflecting ‘a reset of the baseline of the business and provides a platform for turnaround’.
“I am pleased to report a significant new customer contract in our Chilled business with a strategic customer, which underlines future growth and investment.”
He added the completion of two major disposals and another expected in early 2019 strengthened its cash position and improved financial flexibility,
“Under my leadership we will strive for excellence in execution of everything we do, improve our processes and systems and ultimately build a high performance culture that’s about discipline, agility and making products that realise as much value for us as they do for our customers.
“By focusing on our core with a new team, we are laying strong foundations for a more consistently performing and profitable future. I expect to see the margin improvements associated with the turnaround programme from our third quarter onwards.”
The new top team contained several notable names from Muller, including Andrew McInnes as managing director of UK poultry, formerly managing director of milk and ingredients, Seb Jones formerly Global Group Integration Director and Lee Greenbury as Legal and Compliance Director.