UK own-label firm Bakkavor has reported an "improvement" in its revenue and margins in a set of mixed half-year numbers.
The company booked a 3% increase in like-for-like revenue for the first six months of 2012 to GBP853.3m (US$1.34bn), which it claimed was "predominantly" driven by higher volumes.
It posted a 2.9% rise in gross profit to GBP226.2m and a 5% gain in adjusted EBITDA, which excludes restructuring costs, asset impairments and other one-off charges, to GBP55m.
On a reported basis, sales fell 2% thanks to the closure of two businesses in the UK and the sale of a French asset.
Operating profit and net profit both fell as Bakkavor cycled last year's first half, which included over GBP9m in benefits from pension credits and a legal settlement.
CEO Agust Gudmundsson said: "The first half of 2012 has seen us continue to achieve good growth with like-for-like sales contributing to an additional GBP2.6m of adjusted EBITDA year-on-year. Against a difficult market backdrop we have continued to focus on product innovation and our relationships with key customers, helping us to maintain leading positions in our chosen categories."
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Bakkavor Finance (2) plc - Half Year Results for 26 weeks ended 30 June 2012
10 August 2012
Highlights
Solid revenue performance in challenging market with like-for-like sales growth of 3% for the year to date
Adjusted EBITDA1 of £55.0 million for the year to date, up 5.0% on prior year
Capital expenditure programmes and product innovation deliver growth
Corporate re-organisation on track
Commenting on the results, Agust Gudmundsson, Chief Executive Officer said:
“The first half of 2012 has seen us continue to achieve good growth with like-for-like sales contributing to an additional £2.6 million of Adjusted EBITDA year-on-year. Against a difficult market backdrop we have continued to focus on product innovation and our relationships with key customers, helping us to maintain leading positions in our chosen categories.”
Key
Adjusted EBITDA - The Group manages the performance of its businesses through the use of ‘Adjusted EBITDA’. EBITDA is generally defined as operating profit / loss before share of results of associates, depreciation and amortisation. In calculating Adjusted EBITDA, we further exclude restructuring costs, asset impairments and those additional charges or credits that are one-off in nature and significance.
Free cash flow is defined as the amount of cash generated by the business, after meeting all its obligations for interest and tax, and after investments in tangible assets.
Like-for-like results exclude the impact of acquisitions, disposals, foreign exchange translation and defined benefit pension credits / charges but include the Group’s share of revenue generated by associates.
