Bakkavör Group: the demand is growing

Reykjavík / IS. (bg) Bakkavör Group is a leading international food manufacturing company specialising in fresh prepared foods and produce. The Group operates 55 factories and employs around 20.000 people in eight countries with a pro-forma turnover in 2006 of over one billion GBP. The Group´s Head Office is in Reykjavík, Iceland.

Founded 1986, the Group makes over 4.700 products in 17 product categories (also fresh pizza, fresh pasta and Wraps), which are developed and sold predominantly under its customers´ own brands. In addition to the United Kingdom and Iceland, the Group also has business operations in France, Belgium, Spain, China, Czech Republic and South Africa and is well-positioned for further expansion. This days Bakkavör announced the Group´s results for January to September 2007. the Business highlights:

  • Turnover 1,1 billion GBP in 9M, up 23 percent and 375,7 million GBP in Q3, up 13 percent
  • Growth in like-for-like sales in underlying business 8,6 percent in 9M
  • EBITDA 115,6 million GBP in 9M, up seven percent and 39,7 million GBP in Q3, down two percent
  • EBITDA ratio 10,5 percent in 9M and 10,6 percent in Q3
  • Operating profit (EBIT) 86,9 million GBP in 9M, up four percent, and 30,1 million GBP in Q3, down six percent
  • Shareholders´ earnings 36,4 million GBP in 9M, up four percent, and 11,3 million GBP in Q3, down 25 percent
  • Cash generated from operations 110,2 million GBP in 9M, down eleven percent
  • Equity ratio 19,4 percent, up from 18,2 percent at year end 2006
  • Earnings per share 1,7 pence in 9M, down nine percent
  • Return on equity 19,2 percent compared with 28,2 percent in 9M 2006
  • 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

Exchange rate on October 26th, 2007:
1.000 Euro (EUR) = 697,110 British Pounds (GBP)
1.000 British Pounds (GBP) = 1.434,49 Euro (EUR)

Chief Executive Officer August Gudmundsson: «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».

Attention: A detailed description of the results Bakkavör Group has printed as PDF file (12 pages | 138KB).