Bakkavor Sees Full-Year Revenue Growth Despite UK Inflation
Bakkavor Group, the UK-based provider of fresh prepared foods, has announced that it saw like-for-like revenue grow by 5.4%, to £1.8 billion, in 2017.
Adjusted EBITDA rose by 4.2%, to £152.6 million, while adjusted profit before tax went up by 13.2%, to £84.8 million.
However, the company says that volume growth was negatively impacted in the second half of 2017, as UK consumers reacted to inflationary pressures.
Bakkavor is anticipating that this trend will continue into 2018, but it expects volume growth to benefit from improved market conditions and new business later in the year.
Bakkavor says that it began a "significant" capital investment programme last year, to support ongoing growth across the group, and started construction on four "key projects" in the UK, the US and China.
The company also underwent a successful listing on the London Stock Exchange in November, after changing its position on an IPO, which, the group says, has provided capital to accelerate strategic investments.
"This has been an historic year for Bakkavor," said Agust Gudmundsson, its chief executive officer.
"We have transformed the group, fully refinancing our lending facilities and listing on the London Stock Exchange, positioning us well for future growth. Our strong trading performance, in a highly inflationary environment, reflects both our market-leading expertise in great-tasting food and the strong strategic partnerships with our customers," Gudmundsson added.
Bakkavor is a leading company in the UK’s £7 billion fresh-prepared food market, providing salads, desserts, pizza and other prepared meals for customers such as Tesco, Marks & Spencer and Sainsbury's.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.