Revenue and EBITDA (including margins) were ahead of our estimates. Poultry benefited from destocking, which boosted prices. However,
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Purchasing the other 50% of the Hook2Sisters will give the Boparan Family Office more opportunities to manage the margins at
Read MoreQuickly finding a replacement for the old CFO is a positive for Boparan/2 Sisters. With the refinance behind them, the new CFO has
Read MoreCongratulations to Ranjit Boparan for finishing the London Marathon and raising £140k for charity.
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Topline and Gross Profit/EBITDA were broadly in line with our estimates; operating cash flow was higher due to a better-than-expected payables performance in
Read MoreSourcing some of its chicken from Germany is more about ASDA’s lower prices campaign than it is about supply chain challenges. It sends a warning shot to
Read MoreCMA approval for the Boparan family to purchase ForFarmers may provide some scope to support Boparan, but with 75% of sales subject to ratchets
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The impact of Avian Flu on Boparan is small so far. In Norfolk, four farms have reported cases and a handful of new control zones have been set up; the control zones
Read MoreRanjit Boparan is pushing for higher chicken prices from his supermarket customers as he tries to recover £30m of higher costs due to the
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Given the new bond was issued after this quarter ended, there are no surprises in the FYE25 Q1 figures. On a positive note, volumes continue
Read MoreThe ratchet system in place with the supermarkets regarding feed prices is the primary reason the CMA is preventing (for a second time) the
Read MoreThe rating upgrade reflects the successful completion of the refinancing at Boparan. S&P expects (agency-adjusted) EBITDA of
Read MoreThe warning from Ranjit Boparan about rising costs in the Poultry business resulting from the recent budget will depress bond prices. The increase in
Read MoreOnce again, a rabbit from the hat arrives when Boparan is refinancing. The sale of the European business will reduce headline leverage to 2.7x. The new SSN is a £390m 5-year (NC2) deal on an Adjusted EBITDA of £141m and a margin of 6.4%. Margins of ~6.5% will likely be under pressure as supermarkets previously saw 5% as normal. In previous refinancings, pressure in the supply chain has followed quickly. We will take a proper look at the OM, but our bias is to look at Boparan as a short once the deal is done.
Read MoreA positive rating watch from Fitch is a small improvement forBoparan and reflects the preparations for the new issue, which we expect in
Read MoreDisposing of the European business will reduce leverage at Boparan. The Boparan family office is paying €200m, and we estimate the disposal will reduce
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The Q3FY24 results were stronger than expected as Boparan once more produced the proverbial chicken from a hat in a refinance year. We still expect the refinance in
Read MoreThe appointment of Rothschild as an advisor for Boparan’s upcoming refinance initially struck us as odd. However, Rothschild worked with
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