Bakkavor has booked an increase in earnings during 2012 as the group was able to extend its "market leading positions" in the chilled and convenience sectors.
The company today (21 February) revealed that operating profit rose to GBP56.8m (US$86.7m) in 2012, up from a loss of GBP2.8m after exceptional items trimmed GBP58.9m off operating profit in 2011. Adjusted EBITDA was up 7% to GBP115.1m during the year.
Sales from continuing operations rose 1% to GBP1.59bn during the fiscal year, while like-for-like sales were up 5.4%. Bakkavor said gains were driven by the extension of its "market leading positions" through "targeted investment" in capacity and innovation.
Looking to 2013, the group said it had made an "encouraging" start to the year despite "challenging" conditions and an "uncertain" economic outlook. Bakkavor sounded a note of caution on raw material inflation, which is expected to kick in later in the year.
The group also admitted consumer confidence in prepared meals has been dented by the horsemeat scandal, which hit Europe last month.
"The worries over contamination in the food chain have understandably impacted consumer confidence. Bakkavor remains absolutely committed to the highest standards of food safety and integrity and we are continuing to work with our customers, suppliers and the authorities on rebuilding consumer trust," CEO Agust Gudmundsson commented.
Q4 2012 and FY 2012 Highlights
Highlights
• Strong revenues in 2012, with like-for-like sales growth of 9.4% for the quarter and 5.4% for the full year
• Adjusted EBITDA2 of £115.1 million for the year, up 6.9% on 2011
• Extended our market leading positions through targeted investment in capacity and innovation
• Strength of long term customer relationships results in further gains
Commenting on the results, Agust Gudmundsson, Chief Executive Officer said: “The Group made good progress in 2012, particularly in the last quarter which gave the business momentum going into 2013. Although the economic climate remains tough we are confident of our strategy and are well positioned in the chilled convenience market. The worries over contamination in the food chain have understandably impacted consumer confidence. Bakkavor remains absolutely committed to the highest standards of food safety and integrity and we are continuing to work with our customers, suppliers and the authorities on rebuilding consumer trust”.
