Bakkavor Sees Group Revenue Up 1.5% In FY 2019
UK-based food manufacturer Bakkavor Group has posted 1.5% year-on-year growth in group revenue to £1.9 billion (€2.2 billion) in its financial year 2019.
The company's like-for-like revenue increased by 1.7% to £1,787.2 million (€2,095 billion), from £1,757.9 million (€2,060.6 million) in 2018.
Operating profit dropped 18.9% to £69.4 million (€81.4 million) from £85.6 million (€100.3 million) a year ago, impacted by exceptional costs and start-up losses for new sites.
The pre-IRFS 16 adjusted EBITDA remained unchanged at £153.5 million (€179.9 million).
Bakkavor's international division reported strong LFL revenue growth of 12.8% to £227.4 million (€266.6 million).
The UK division saw marginal LFL revenue growth of 0.2%, amounting to £1.6 billion (€1.8 billion).
Commenting on the company's performance, Bakkavor chief executive, Agust Gudmundsson, said, "This was another solid year for Bakkavor, in which we delivered further growth, increased market share, and strengthened our operations both in the UK and internationally.
"In the UK, against difficult market conditions, and with further labour inflation and low consumer confidence, we successfully protected EBITDA margins and held our underlying profitability."
The company consolidated its leadership position in the UK by gaining market share in core categories, it said.
Gudmundsson continued, "We have significantly strengthened our market-leading position in the desserts category and launched a major new meal range for one of our strategic customers, which give us confidence going into 2020."
Bakkavor launched three new production facilities in China in the period, and worked towards developing stronger retail partnerships in the US.
Commenting on the company's outlook for 2020, Gudmundsson, said, “Looking further ahead, we have strong foundations and the skills and expertise in place to deliver on our long-term strategy.
"We are confident that the strength of our business model, customer strategy and category excellence will enable us to capitalise on further growth opportunities."
Gudmundsson also pointed out that the Coronavirus outbreak "is having a significant impact" on its business in China.
"Our key priority is to safeguard the health and wellbeing of our colleagues through this challenging period," he added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.