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Q3 Results 2018/2019

26 June 2019

BOPARAN HOLDINGS – Q3 2018/2019 RESULTS (13 weeks ended 27th April 2019)

Turnaround actions start to deliver; earnings growth driven by core businesses



Q3 2018-19

Q3 2017-18

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 27th April 2019 compared to the 13 weeks ended 28th April 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 Q3 18/19 and Q3 17/18 exclude the results of the disposed businesses Goodfellas pizza, Red Meat, the Manton Wood sandwich business and Green Isle Brands.

² EBITDA is stated before depreciation, amortisation and pension scheme administration costs. 

Key Q3 highlights

Turnaround action coming through in results

  • Like-for-like EBITDA for the quarter up 19.0% to £21.9m (Q3 17/18: £18.4m) 
  • First like-for-like year-on-year EBITDA growth in 10 quarters
  • Earnings growth driven by UK and EU Poultry businesses
  • Like-for-like sales up 1.2% to £663m  (Q3 17/18: £655.4m) driven by growth in core businesses

Continued focus on margin improvement

  • Full quarter impact of closure of 5 Star Fish and Cambuslang facilities
  • Return to sustainable profitability at Gunstones Bakery
  • Next stage of UK Poultry footprint changes under consultation
  • Restructure of Fox’s Uttoxeter facility progressing to plan, with cost reductions expected 19/20

Balance sheet strengthening remains a priority

  • Disposal of Green Isle Brands business in the quarter
  • Beginning of sale process for Matthew Walker 
  • Repayment of 2019 bonds completed in May


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

“These results represent the first like-for-like EBITDA growth in two and a half years, providing confidence that the turnaround actions are taking hold.

There are still substantial challenges the business faces, but these results do represent an important first step in demonstrating that we are stabilising the Group and making sure we follow through with the right set of actions to deliver growth.

There are more encouraging signs in our Protein and Chilled areas, and crucially our UK Poultry operation will begin to benefit following fundamental changes to our operational planning capabilities. The news from our Gunstones Bakery business is also a positive sign of turnaround, and we are determined to ensure investments we have announced in UK Poultry and Fox’s Biscuits deliver the returns we expect.

Further divisional restructurings will continue, as will a relentless focus on improving our balance sheet position. Lasting change cannot come about overnight, but these results do show our strategy is gaining momentum as green shoots begin to appear.”


Q3 performance overview

  • Protein. Underlyinglike-for-like sales grew by 2.7% and like-for-like EBITDA growth of £4.7m.
  • Chilled. Like-for-like sales increased by 8.7% and like-for-like EBITDA fell by (£0.8m).

  • Branded. Like-for-like sales increased by 2.2% and like-for-like EBITDA decreased by (£0.4m). 


Debt funding and cash flow

At the quarter-end the Group’s debt capital structure consisted of senior loan notes: £155m 5.25% notes due 2019, £330m 5.50% notes due 2021 and €300m 4.375% notes due 2021, with a £80m Revolving Credit Facility maturing in 2021. Shortly after the period end date the Group repaid its 2019 notes in full. Net Debt at the quarter-end was £624.8m which represents a 0.4% increase year-on-year (Q3 2017/18 £622.6m).



The transformation of the business will continue and should help drive better results in future quarters. However, there is further work to do to ensure this strategy delivers the improvements we require, and cost reduction and restructuring are likely to continue for the foreseeable future.  Our targeted investments should also bring returns in the new financial year, and our focus will remain on strengthening our balance sheet and stabilising core operations.



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 Protein, Chilled, Bakery and Frozen 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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