Bakkavör Group: swings to loss in Fiscal Year 2008

Reykjavik / IS. (bkg) Icelandic Bakkavör Group, the United Kingdom´s largest producer of fresh prepared food and ready meals, published its annual financial results for the fourth quarter and full year 2008, ended 31 December. Summary in short:

  • Turnover 1,6 billion GBP in 2008, up ten percent and 412,5 million GBP in Q4/2008, up eleven percent.
  • Underlying like-for-like sales growth was 1,9 percent in 2008 and 5,1 percent in Q4/2008.
  • EBITDA pre-restructuring costs 108,5 million GBP in 2008, down 27 percent, and 15,7 million GBP in Q4/2008, down 53 percent. EBITDA margin pre-restructuring 6,7 percent in 2008 and 3,8 percent in Q4/2008.
  • Loss for the period amounted to 154,2 million GBP in 2008 compared with a profit of 47,4 million GBP in 2007. Loss for the period in Q4/2008 amounted to 98,5 million GBP compared to a profit of 10,4 million GBP in 2007.
  • Profit impacted by 177 million GBP one-off costs, including restructuring costs, loss on Greencore investment, mark-to-market losses on interest rate swaps and foreign currency loans and deferred taxation.
  • Cash flow from operations 45,7 million GBP in 2008, down 67 percent, and negative of 22,7 million GBP Q4/2008, compared to a cash inflow of 27,6 million GBP in Q4/2007.

Chief Executive Officer Agust Gudmundsson: «In 2008 our profitability and cash generation were significantly affected by a number of one-off exceptional factors, such as extensive restructuring activity and the loss on our investment in Greencore Group PLC, coupled with the tough trading environment. Through focusing on our business priorities, we have however made progress in improving operational efficiencies, mitigating inflationary costs and increasing market share in core product categories. Going forward, we expect the trading conditions to remain challenging, however due to the actions we have already taken and the continued focus on our business priorities we believe the Group is well placed to manage ongoing trading pressures as well as adapting to current and future consumer demand. As such, we anticipate returning to profit growth and good cash generation in 2009».

Financial Statement Release: Bakkavör Group: EBITDA pre-restructuring costs 109 million GBP in 2008 – Secured funding across operating businesses for next 3 years – Successfully retrieved £144m of cash deposit with New Kaupthing – Profit impacted by significant one-off costs – Maintained sales performance in tough climate (PDF / 13 pages / 101 KB). A presentation of Bakkavör Group´s annual results on the download page is available too.

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