FOX'S Biscuits parent company has seen a strong first quarter, its latest figures have revealed.
Boparan Holdings Limited, which purchased Northern Foods last year, reported the revenue for the first quarter reached £565 million for the 13 weeks ending on October 29 last year with like-for-like sales up 10 per cent compared with the same period the previous year.
The business, which is the holding company for the 2 Sisters Food Group, saved the Uttoxeter factory, in Cheadle Road, employing nearly 800 people, from potential closure and said the integration of Northern Foods and synergy delivery is on plan.
However, it said branded like-for-like sales were up 4.2 per cent which reflected a return to sales growth in the frozen department but a slower growth in the biscuits market which led to a slower sales momentum in the first quarter.
This is expected to continue in the second quarter and the branded margins remained broadly in line with full year 2011 margins.
Boparan Holdings saw its earnings before interest, taxes, depreciation and amortization (EBITDA) at £47 million which is up £1.5 million, 3.3 per cent, on last year, and a net cashflow from operating activities, before interest, of £63.8 million.
On October 29, the net debt, which comprises of bank loans, bonds and finance leases after offsetting cash and cash equivalents, stood at £647.2 million with cash balances at £65.4 million.
Ranjit Singh, CEO of 2 Sisters Food Group, said: “The first quarter of our new financial year has seen a solid start, despite the continued challenging trading and consumer environment.
“We have recorded strong sales growth as we work closely with our customers to deliver value to the consumer.
“The second quarter is progressing in line with our plan and we expect our Christmas performance will have been solid, albeit in an increasingly promotionally driven trading environment which will constrain Q2 margins.”
