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
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The 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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Q2 Revenue was marginally beneath our expectations due to lower feed prices; this depressed EBITDA to £34m vs our£42m forecast. LTM Adjusted EBITDA is
Read MoreBoparan will be refinancing its SSNs in 2024, so it is an opportune time to upgrade the CFO as work begins to sell a story to Investors. The article suggests a
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With a refinancing coming in November (using FY24 results), Boparan’s results continue to improve. We have been here before, and it would be a brave man to bet against the
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FY23 Q4 numbers were slightly above our expectations. Management is cautiously optimistic about margin improvement and resulting deleveraging in FY24. Boparan has managed this particular conjuring trick before when a refinance is imminent. It is also in
Read MoreToday's long article in the FT about the pricing woes for chicken UK producers doesn’t have much new news. However, it does illustrate that
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Inflation recovery in the Meal & Bakery (M&B) business meant that volumes and revenue were significantly higher than we anticipated (£165m vs £103m). As a result, our
Read MoreThe allegations of welfare issues at one of 2 Sisters farms in Lincolnshire will depress bond prices. A welfare scandal is a headache Boparan could do
Read MoreUkrainian butcher MHP wants to sell more chicken into the UK market, and as existing exporter should be capable of meeting the logistics challenges of
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