25 October 2007
Operating profit £86.9 million
Business highlights for the first nine months and Q3 2007
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Turnover £1.1 billion in 9M, up 23% and £375.7 million in Q3, up 13%
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Growth in like-for-like sales in underlying business 8.6% in 9M
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EBITDA £115.6 million in 9M, up 7% and £39.7 million in Q3, down 2%
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EBITDA ratio 10.5% in 9M and 10.6% in Q3
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Operating profit (EBIT) £86.9 million in 9M, up 4%, and £30.1 million in Q3, down 6%
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Shareholders’ earnings £36.4 million in 9M, up 4%, and £11.3 million in Q3, down 25%
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Cash generated from operations £110.2 million in 9M, down 11%
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Equity ratio 19.4%, up from 18.2% at year end 2006
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Earnings per share 1.7 pence in 9M, down 9%
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Return on equity 19.2% compared with 28.2% in 9M 2006
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Two acquisitions in Q3 strengthened Bakkavör Group’s operations in the UK and Central Europe – Exotic Farm Produce Group in the UK and Heli Food Fresh in the Czech Republic. The Group acquired Welcome Food Ingredients in the UK in October
Ágúst Gudmundsson, Chief Executive Officer, said:
"We are experiencing the toughest trading conditions in decades, which have affected Bakkavör Group’s performance and heavily impacted sales in the first nine months of the year. Fundamental changes in world supply are resulting in global commodity price increases, which are having a significant impact on our business. This, coupled with extreme weather conditions in the UK, a major product recall in Q1 and capacity transfer within part of our ready meals operations in Q2, is reflected in our nine-month results. Against this backdrop, Bakkavör Group sales outperformed market growth and we continued to strengthen our position across our markets with five acquisitions during the period, in the UK, Czech Republic, France and China. The Group’s long-term prospects are good – the demand for fresh prepared foods is growing around the world and we will continue to take advantage of favourable market trends and further develop our business on a global scale.”