Based in the United Kingdom (U.K.), 2 Sisters Food Group has recently been recognized for its contribution to the national poultry industry. According to newly released results for the fiscal year to July of 2022, the group’s poultry business delivered year-on-year improvements in sales and profit.
Last month, 2 Sisters Food Group won a National Egg and Poultry Award 2023 in the Processor of the Year category.
These awards are backed by industry organizations, the British Poultry Council and the British Egg Industry Council.
On receiving the Award at the sixth National Egg & Poultry Awards event, Group Agriculture Director Nick Davies acknowledged the long term commitment of 2 Sisters and its supply chain partners to improving standards.
Among the firm’s key recent achievements is the delivery of the Oakham Gold higher welfare chicken, according to Davies.
Latest report highlights Group’s 2021-2022 challenges
Recently published are the company accounts for the 2 Sisters Food Group for the year ended July 30, 2022.
Owned by Boparan Holdings, the Group comprises two businesses, namely Poultry and Meals & Bakery.
2 Sisters’ overall turnover for 2021-2022 was more than GBR2.75 billion (US$3.50 billion) — a year-on-year increase of 5.6%.
From a headline operating loss for the previous year of GBP22.7 million, the company reported a profit of GBP34.8 million for 2021-2022. Before exceptional items, the operating profit figures were GBP6.0 million and GBP37.8 million, respectively.
At GBP99.5 million for 2021-2022, the group reported Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) up by GBP23.2 million year-on-year.
Improved performance by the Poultry business
For the Poultry business, 2 Sisters sales increased by 9.8% to almost GBP2.19 billion. Before exceptional items, operating profit for this sector was reversed from a loss of GBP13.4 million in the previous year to a positive figure of GBP22.3 million for the 12 months covered by the report.
At the time of reporting, labor shortages and rising inflation were impacting the U.K. poultry sector generally, according to the group.
A reduced labor force — arising from the U.K.’s departure from the European Union (Brexit) and the lingering effects of the coronavirus (COVID-19) pandemic — resulted in restricted flows through the firm’s processing plants.
For the first six months of the reporting period, the business was hit hard by rapid and dramatic inflation. However, 2 Sisters reports that these were largely mitigated by an inflation recovery program over the following six months.
Furthermore, the report notes, fiscal performance over this latter period benefitted from the group’s disposal of a loss-making poultry operation at sites in Derby and Sunderland.
Adding to the group’s challenges at the end of its 2021-2022 fiscal year was a period of one month of exceptionally hot weather, which adversely chicken production.
Strong performance was delivered by 2 Sisters’ EU Poultry business in the year ended July of 2022.
As COVID restrictions lifted, sales volumes rose, and selling prices increased significantly. Market opportunities for the Polish operation expanded as a result of the war in Ukraine.
As of July 2022, Boparan Holdings owned a number of 2 Sisters’ chicken processing operations in the U.K. and Amber Foods in Jersey, as well as chicken grower, Hook 2 Sisters. Also listed among its investments were a number of Storteboom companies in The Netherlands, and 2 Sisters Hamrol in Poland.
More on 2 Sisters Food Group
Annual slaughterings of 520 million birds put 2 Sisters Food Group in second place in the ranking of Europe’s largest poultry companies, according to WATTPoultry.com’s Top Poultry Companies survey.
Among the largest food producers in the U.K., 2 Sisters Food Group supplies around one-third of all the poultry meat in the country.
In February of 2023, it was announced that the Group’s Chief Executive Officer Ronald Kers would be leaving the company.
