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Q1 Results 2019/2020

11 December 2019

BOPARAN HOLDINGS – Q1 2019/2020 RESULTS (13 weeks ended 26th October 2019)

Turnaround continues; Acceleration in earnings growth, debt levels falling



Q1 2019-20

Q1 2018-19

Y-o-Y Change

LFL sales¹




LFL profit before interest, tax, depreciation and amortisation (EBITDA)¹,²




LFL profit before interest, tax, depreciation and amortisation (EBITDA) margin %¹,²








Total sales




Profit before interest, tax, depreciation and amortisation (EBITDA)²








¹ Like for like (LFL) sales and EBITDA are based on the 13 weeks ended 26th October 2019 compared to the 13 weeks ended 27th October 2018, with prior year adjusted for the impact of exchange translation and both periods in question stated to include only those businesses that were owned throughout both periods. For example, both Q1 19/20 and Q1 18/19 exclude the results of the disposed Manton Wood, Green Isle Brands and Matthew Walker businesses.

² Operating profit is calculated pre-exceptional items and is after charging of the defined benefit pension scheme administration costs. 


Key Q1 highlights

Third consecutive quarter of year-on-year growth

    • 42.4% growth in like-for-like EBITDA earnings to £22.5m
    • 0.6% LFL sales growth driven by EU poultry, Biscuits and Bakery businesses

Margin improvement coming through in all divisions

    • UK Poultry turnaround continues, EU poultry performing well with Polish added value factory being commissioned; Witham site closure in quarter
    • Improved performance in ready meals business
    • Bakery division benefitting from cost out programme, divisional integration and commercial initiatives.

Net debt reduction of 13.5% year-on-year

    • Matthew Walker business sold for £67m in the quarter
    • Continued focus on realising value from non-core assets
    • Net debt reduction of £91.2m year on year to £581.9m


Ronald Kers, CEO, 2 Sisters Food Group, said:

“Our new financial year starts with another quarter of double-digit like-for-like earnings growth for the Group, providing more evidence that the positive actions we have made in previous quarters are paying off. Turnaround outcomes are being realised and we’re seeing improved margin performance and encouraging performance in all our divisions.

Recovery across our Group continues and the unrelenting focus on cost control, reduction and cash generation is bringing more positive results and gives the business a strong platform for this new financial year. 

Our UK Poultry operation is seeing further evidence of turnaround, our EU business is expanding for the future, and all divisions have seen EBITDA benefits as a result of positive commercial initiatives, efficiency improvements and overhead reductions.

We have concluded the consultation period on the Pennine Meals factory and we will proceed with closure plans prior to the end of our financial year. These are the right actions to take and our priorities remain improving core business performance, strengthening the balance sheet, and focusing on cash generation.”


Q1 performance overview

  • Poultry. Underlying like-for-like sales increased by 3.1% with EBITDA up by +£1.5m
  • Meals. Like-for-like sales declined by (2.0)% with EBITDA up by +£2.0m
  • Bakery. Like-for-like sales increased by 5.5% with EBITDA up by +£3.2m 

Debt funding and cash flow

Net Debt at the quarter-end was £581.9m which represents a £49.5m improvement in the quarter (Q4 2018/19 £631.4m).



Our quarter two 19/20 results are due to be published on 25th March 2020. We expect the trend of year-on-year EBITDA growth to continue.

The Group will continue to explore opportunities to realise value from non-core assets, in line with the strategy.



Please go to the Investor Relations section of the corporate website

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About Boparan Holdings:

Boparan Holdings is the parent company for 2 Sisters Food Group with headquarters in Birmingham. We are a leading food manufacturer with strong market positions in Poultry, Meals and Bakery categories. We focus on delivering the highest quality products to our customers at the lowest cost.

This announcement contains forward-looking statements in relation to Boparan Holdings Limited (the “Company”) and its subsidiaries. By its very nature, forward-looking information requires the Company to make assumptions that may not materialise or that may not be accurate. Forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the control of the Company that could cause the actual performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update or revise any of them, whether as a result of new information, future events or otherwise, except as required by law.      

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