Bakkavor Group: Announces Full Year Results 2017

Reykjavik / IS. (bkg) Island’s Bakkavör Group, a leading provider of fresh prepared food, announces its full year unaudited results for the 52 week period ended 30 December 2017.

Financial Highlights

Underlying performance

  • Like-for-like revenue up 5.4 percent at 1’800.3 million GBP (2016: 1’708.5 million GBP)
  • Adjusted Ebitda up 4.2 percent at 152.6 million GBP (2016: 146.4 million GBP) with margin of 8.4 percent (2016: 8.3 percent)
  • Adjusted profit before tax up 13.2 percent to 84.8 million GBP (2016: 74.9 million GBP)
  • Adjusted EPS up 25.5 percent at 13.3p (2016: 10.6p)
  • Free cash flow increased by 12.6 million GBP to 71.1 million GBP (2016: 58.5 million GBP) with leverage of 1.8x (2016: 2.6x)

Statutory performance

  • Group revenue up 4.6 percent2 / 2.9 percent at 1’814.8 million GBP (2016: 1’763.6 million GBP)
  • Profit before tax 24.1 million GBP lower at 39.0 million GBP (2016: 63.1 million GBP), largely due to public listing and refinancing costs
  • Basic EPS 3.0p lower at 5.8p (2016: 8.8p)
  • Cash from operating activities 18.7 million GBP lower at 93.4 million GBP (2016: 112.1 million GBP)
  • Net debt 100.3 million GBP lower at 266.6 million GBP (2016: 366.9 million GBP)

Operational and Strategic Highlights

Significant capital investment programme to support ongoing growth across the Group; started construction on four key projects in UK, US and China
Further development of businesses in US and China through stronger customer partnerships
Successful listing on the London Stock Exchange, providing capital to accelerate strategic investments
Full refinancing of lending facilities, including redemption of senior secured notes

Chief Executive’s Summary

CEO Agust Gudmundsson said: «This has been an historic year for Bakkavor. We have transformed the Group, fully refinancing our lending facilities and listing on the London Stock Exchange, positioning us well for future growth. Our strong trading performance, in a highly inflationary environment, reflects both our market-leading expertise in great tasting food and the strong strategic partnerships with our customers.

The second half of 2017 saw volume growth impacted as UK consumers reacted to significant inflationary pressure. As expected this trend has continued into 2018 and is likely to remain until inflation eases. Later in the year, we expect our volume growth to benefit from improved market conditions and new business.

Despite these industry-wide challenges, we are confident that our scale, track record of innovation and focus on operational efficiencies ensures we are well placed to deliver ongoing profitable growth, both from existing business and our long-term investment strategy.»

bakenet:eu