Sales growth at Boparan as buys bed in
A resurgence in sales of the Goodfella's pizza brand reflected growth across the food retailing empire of chicken magnate Ranjit Singh Boparan. Boparan Holdings upped first quarter revenue to £565m and said its recent acquisitions were bedding down well.
In results for its first quarter results, Boparan Holdings said it was likely the expected full year addition of between £15m to £25m from the takeover of Yorkshire-headquartered Northern Foods would be achieved.
The company also had high hopes for the Brookes Avana business that it acquired from Premier Foods last month (December) in a £30m deal.
With a focus on cost, Brookes Avana's "high quality heritage" and the customer relationships it has, Boparan was confident of returning the previously loss-making business back to profitability over the next 12 to 24 months.
Revenue of £565m was reported for the 13 weeks to 29 October by the company which said like-for-like sales increased by 10 per cent.
In the food business' branded division there was a return to sales growth in frozen, driven by the Goodfella's pizza campaign.
Elsewhere, Birmingham-headquartered Boparan Holdings, the parent company of the 2 Sisters Food Group, said it had experienced "strong sales growth" in its poultry division – the cornerstone of its trading – while there was also growth in ready meals, sandwiches and salads and chilled pizza.
"The first quarter of our new financial year has seen a solid start, despite the continued challenging trading and consumer environment," said chief executive Ranjit Singh Boparan.
"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."
Looking ahead, Boparan said after a slow start to its second quarter it expected to post a solid trading performance.
In the crucial Christmas period, which the company said was "challenging and increasingly promotional", Boparan sold almost 20 million steamed puddings, ten million tins of seasonal biscuit assortment tins and 2.5 million ready meal accompaniments.
