UK: Bakkavor upbeat after mixed 2013 results
Bakkavor has suffered a loss of $23m in net profit during Q4
Bakkavor today (14 February) claimed it had "outperformed" the UK fresh food market in 2013, a year when sales rose, impairment charges weighed on operating profit and its bottom line was boosted by proceeds from disposals.
An impairment charge of GBP21.2m meant Bakkavor's annual operating profit fell 24.1% to GBP43.1m.
The company booked a profit of GBP7.8m, compared to GBP2.1m in 2012, helped by the proceeds from the sale of assets in France and Spain.
Bakkavor recorded a loss from continuing operations of GBP11.6m, versus a profit of GBP1.3m a year earlier.
CEO Agust Gudmundsson viewed the results positively. "The group made excellent progress delivering on our key strategic objectives in 2013. We completed a successful refinancing, exited a number of overseas operations and restructured
certain low margin businesses. This was achieved whilst still growing our revenues ahead of the market, protecting our margin from significant raw material inflation and delivering double-digit growth in free cash generation.
We expect trading conditions to remain challenging, particularly due to inflationary pressures, however we enter the new financial year with good momentum in our business and we remain confident in our strategy for the future".
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