Boparan Holdings’ Q4 results for 2018-19 show further growth in like-for-like earnings for the Group.
2 Sisters Group CEO Roland Kers said: “Our UK Poultry operation is seeing further evidence of turnaround and all divisions have seen EBITDA benefits as a result of commercial initiatives, and efficiency improvements.
“Our unrelenting focus on cost reduction, control and cash generation has yielded positive results in the quarter, which gives the Group a strong platform heading into next financial year.
“However,” warned Kers, “the environment is volatile both in the markets in which we operate and the economy at large. Brexit continues to present substantial uncertainty for all food processors but we are taking steps to ensure our business is fit for the future.”
“The environment is volatile both in the markets in which we operate and the economy at large. Brexit continues to present substantial uncertainty for all food processors …”
He added: “Since our last update we have announced the sale of our Matthew Walker business for £67m, which represents another major milestone in the delivery of our strategy. Having now repaid the remaining 2019 maturing debt, our priorities remain improving core business performance, strengthening the balance sheet, and focusing on cash generation.”
Key Q4 highlights included:
• Continuation of like-for-like profit (EBITDA) growth, up 29.6% to £25.4m (Q4 17/18: £19.6m)
• Strategy to get back to core is delivering: earnings growth driven by Protein division
• Revenue growth seen in Protein, Chilled, and Branded: Group like-for-like sales up +0.2% (+2.6% excluding the impact of the closure of Five Star Fish)
• Protein performance driven by UK Poultry turnaround initiatives, including positive price impacts, and cost reduction as well as the benefit from the Five Star Fish closure
• Chilled like-for-like sales increased due to launch of new business and strong performance in Gunstones
• Brands segment stabilised as Fox’s branded performance improves
Balance sheet strengthening remains a priority
• Matthew Walker business sold for £67m; completed 26th October
• Repayment of 2019 bonds completed in May
• Continued focus on realising value from non-core assets.