Boparan Holdings, which owns food manufacturer 2 Sisters Food Group has seen its operating profit decline 11.4% in the second quarter of the year, to £19.4 million.
Total sales at the firm were up 5.2% to £833 million, however, with like-for-like sales up 2.6% to £812.8 million. Like-for-like operating profit was down 17.8%.
The company cited its decline in profitability for the period to 'headwinds affecting overall margin performance in the short-term', and added that the performance of the group was 'in line with expectation'.
Commenting on its results, Ranjit Singh, the chief executive of 2 Sisters Food Group, said that the "results reflect the very tough trading environment we face. The market is as competitive as ever and currency fluctuations have brought about higher input prices. It is unsurprising that this has put a margin squeeze on a lot of businesses, including our own."
Singh, however, praised the "underlying positive momentum across the business, as we have seen over the past four trading quarters. Sales are rising, and we are well positioned to grow with our customers in new markets."
He added that the group is continuing to invest in its supply chain, making sure it is "efficient, sustainable and fit for the future. This has been our approach when making investment decisions, and we are still focusing strongly on a ‘cost out’ and efficiency culture."
In a statement, the company said that it was confident that with 'a series of tactical and strategic actions', the headwinds forecast for 2017 can be mitigated.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.