Profits at 2 Sisters Food Group have plunged by almost half as the cost of inputs such as imported feed grain has increased due to the weak sterling. In fourth-quarter results released last week, 2 Sisters reported a 50% decline in operating profits to £15.4m, as profit margins halved to a slender 1.9%.
The group reported a 5% increase in sales to £516m, primarily as a result of price increases across a number of product ranges. Full-year operating profits fell 25% to £68m, despite a 5% rise in full-year sales to £3.3bn. Net debt increased by almost £90m to just over £795m. The group is highly geared with a debt to earnings ratio in excess of 4.9 times.
2 Sisters, controlled by billionaire Ranjit Singh, was recently embroiled in a food safety scandal following an investigation by UK media. It appeared to show workers at a 2 Sisters facility tampering with food safety records. Operations at the facility were suspended for over a month and 2 Sisters said this will adversely affect first-quarter performance.
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Profits at 2 Sisters Food Group have plunged by almost half as the cost of inputs such as imported feed grain has increased due to the weak sterling. In fourth-quarter results released last week, 2 Sisters reported a 50% decline in operating profits to £15.4m, as profit margins halved to a slender 1.9%.
The group reported a 5% increase in sales to £516m, primarily as a result of price increases across a number of product ranges. Full-year operating profits fell 25% to £68m, despite a 5% rise in full-year sales to £3.3bn. Net debt increased by almost £90m to just over £795m. The group is highly geared with a debt to earnings ratio in excess of 4.9 times.
2 Sisters, controlled by billionaire Ranjit Singh, was recently embroiled in a food safety scandal following an investigation by UK media. It appeared to show workers at a 2 Sisters facility tampering with food safety records. Operations at the facility were suspended for over a month and 2 Sisters said this will adversely affect first-quarter performance.
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