(Debtwire) Boparan deleveraging unlikely as cost inflation and labour shortages pressure poultry margins

“This was one of our most successful trades last year and it wasn’t Covid-related – it did well for fundamental reasons. But we did not participate in the new bond as it became clear that feed prices would eat up much of the pro forma adjusted EBITDA this year,” independent special situations firm Sarria said. “The company has good liquidity and the labour shortages may be in part transitory, but EBITDA will fall further.”

Guest User24 June 2021BOPARAN

(Debtwire) Boparan cost spike erodes earnings on pass-through time lag, as third parties provide feed support

“Even though we had been long the name for most of last year, we [were] more than sceptical on just how long the run would last. Chickens don’t fly and neither does Boparan,” Sarria commented. “Last year Boparan was one of our favourite fundamental trades, but part of this was probably borrowed from the future in terms of who pays for what and when along the supply chain.”

Guest User29 March 2021BOPARAN