UK: Bakkavor sells stake in Italian asset
- Sales up 4% to GBP407.9m (US$691.3m)
- Adjusted EBITDA up 7% to GBP23.7m
- Sells 40% of Italian business
Bakkavor tightens regional focus
Bakkavor has moved to lower its stake in non-core operations in Italy as it increases its focus on the core markets of the UK, US and Asia.
The group revealed today (8 May) that it has sold 40% of its Italian frozen pizza operation to Dreamfood, an investment company controlled by Cristian Pederzini, the MD of Italpizza.
Terms of the transaction were not disclosed but Bakkavor did reveal Dreamfood has been granted a three-year option to take control of the remaining 60% of the company.
Earlier this year, Bakkavor said it was exiting South Africa through the sale of its operations there.
Bakkavor also booked a jump in first-quarter earnings this morning with sales growth attributed to "favourable weather" and innovation.
Sales increased 4% and adjusted EBITDA was up 7%. EBITDA margin was "in line" with last year despite an inflationary cost environment, the own brand manufacturer stressed.
CEO Agust Gudmundsson said: "It has been another quarter of good growth for the group as we partner closely with key customers and deliver new products. We expect the trading environment to continue to be challenging with the UK grocery market remaining highly competitive. However, we are confident in our strategy and are focused on the long-term objectives for the group."
- Why personalisation will take-off in US food
- General Mills sales woes continue - analysis
- US food next wave on display at Winter Fancy Food
- Comment: Meal kits in US - don't believe the hype
- Analysis: Chocolate sector's deforestation pledge
- Kraft Heinz cuts jobs in US, Canada
- Mondelez set for union crosshairs next week
- Mondelez plays down impact of union action
- Recipe-kit firm HelloFresh launches into UK retail
- Germany's Haribo plans first US candy plant