Bakkavor: announces Q1/2016 financial results

Reykjavik / IS. (bkg) Islandic Bakkavor Group, the United Kingdom’s leading fresh prepared foods manufacturer, announced its Q1/2016 financial results for the 13 weeks ended 26 March. Highlights:

• Solid revenues driven by volume growth in a deflationary market
• Further improvement in adjusted Ebitda margin underpinned by productivity improvements
• Appointment of new Board members following recent ownership changes
• Partial redemption of Senior Secured Notes 2018 gives financing benefits

Commenting on the results, Agust Gudmundsson, Chief Executive Officer said: «I am pleased to report a good start to the Group’s 30th year of trading, with both revenue and margin growth. We continue to make significant progress in our core markets which gives us the confidence to accelerate our capital investment programme, supporting our customers and driving future growth».

Results in million GBP	Q1/2016	Q1/2015	Change
Revenue	415.8	410.2	1%
Like-for-like Revenue	415.7	408.2	2%
Adjusted Ebitda	30.5	24.7	23%
Adjusted Ebitda margin	7.3%	6.0%	130bps
Free cash flow	(4.9)	(5.5)	0.6

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Outlook

The Group has made an encouraging start to the year with both revenue and margin growth.
As we look ahead over the coming months we expect trading conditions to remain challenging
with limited market growth, rising labour costs and uncertainty around the upcoming European
Union referendum. However, we remain confident that we are well placed to manage these
challenges and drive continued improvements across our business.