UK own-label fresh food group Bakkavor has reported higher profits for the first nine months of the year, with the company’s share gains continuing in the third quarter.
Before non-recurring items, Bakkavor’s profit for the nine months to 28 September stood at GBP14.5m (US$22.8m), up from GBP7.7m a year earlier.
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On a reported basis, net profit reached GBP10.5m, versus GBP20.6m in the first nine months of 2013, when Bakkavor booked a one-off gain of GBP12.9m from the disposal of its businesses in France and Spain.
However, underlying and reported operating profit both increased year-on-year. Bakkavor also provided an adjusted EBITDA figure – excluding restructuring costs and one-off charges – for the first nine months of its financial year, which climbed 8% to GBP89.4m.
Revenue increased 2% to GBP1.26bn, with like-for-like sales up 4% at GBP1.29bn.
Bakkavour’s revenue and like-for-like sales rose by the same amounts in the third quarter, when the company said it “outperformed the fresh food market”. Third-quarter like-for-like sales in the UK, its largest market, were up 3%.
“We continued the group’s positive performance through this latest quarter as we further extended our market share whilst also improving margins,” CEO Agust Gudmundsson said.
