UK-based 2 Sisters Food Group has posted an operating profit of £25.5m ($41.6m) for the 13 weeks ended 26 October 2013 (Q1 2013/14), compared to £30.5m for the same period last year.
Total like-for-like (LFL) sales increased by 8.7% to £670m, while operating profit before exceptional items declined by £4m. Sales grew by 43.6% to £885.3m.
During the period, net debt rose by £18.4m to £561m compared to the same period last year. In addition, net cash flow from operating activities, from £2.1m in the first quarter of 2012 to £27m.
Most of the losses during the period were due to the costs related with the integration of Vion's former UK business.
The company's chilled foods division profits declined primarily due to the headwinds of commodity inflation.
"New product introductions in frozen pizza and tight cost management improved results in frozen, but trading conditions remain tough, particularly in Ireland with increasing competition from discounters," the company said in a statement.
