But Boparan Holdings, whose 2 Sisters Food Group owns the Carlisle-based ready meals business, predicts a difficult 2017 as the effects of the weak pound in the wake of the EU referendum push up the price of ingredients.
Turnover for 13 weeks to October 29 was £818.3 million, up from £778.3m in the same period last year.
Like-for-like sales were 2.4 per cent higher, while profits after exceptional items – but before interest and tax – climbed by 6.3 per cent to £18.7m.
Ranjit Singh Boparan, chief executive of 2 Sisters, said: “The positive momentum we saw across the group in our last financial year continues in our quarter one results, but we expect strong headwinds in 2017 and the business is taking action now to prepare for these challenges.”
He added: “The market remains very difficult following the uncertainties around the UK’s decision to leave the European Union.
“Currency-driven inflation and the price-pressured retail grocery market will make next year one of our toughest.”
The chilled foods division, which includes Cavaghan & Gray, was one of the group’s star performers.
Like-for-like sales increased by 5.8 per cent to £156.6m, while operating profit soared by 209.1 per cent to £3.4m.
The period saw more than 200 product launches in readiness for Christmas.
Ranjit Boparan Mr Boparan said: “Investment projects in our chilled division are on track, supplemented by major product launches for customers including traditional British ranges and early launches of Christmas lines.”
His company acquired Cavaghan & Gray, one of Carlisle’s biggest employers, as part of the takeover of Northern Foods in 2011.
The group employs 23,000 people at 45 sites in the UK, Republic of Ireland, Netherlands and Poland, supplying a third of all poultry consumed in the UK.
Brands include Fox’s Biscuits and Goodfella’s Pizza.
Cavaghan & Gray makes ready meals, vegetable accompaniments, fish cakes and crisp bakes for retailers – its biggest customer is Marks & Spencer.
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