Annual profits at own-label supplier Bakkavor have jumped on the back of lower charges for the year and higher international sales.
For the 12 months ending 26 December, net profit rose to GBP53.9m (US$77.8m) from GBP11.5m a year earlier, when the company’s results included higher exceptional items and higher asset impairment charges.
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Operating profit increased 43.8% to GBP89.6m. Bakkavor said the majority of the improvement was due to volume gains and productivity improvements.
Bakkavor provided a figure for adjusted EBITDA, which excluded restructuring costs and royalty charges. It rose 14% to GBP129.7m.
For the year, sales rose 3% to GBP1.67bn. On a like-for-like basis, stripping out the effect of M&A, revenues rose 2% to GBP1.65bn, which “mainly” came from international growth.
FY business performance by segment
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By GlobalDataUK
Revenues: +1% on LFL basis to GBP1.52bn. Adjusted EBITDA: +10% to GBP124.1m. Faster growth seen in fresh prepared foods, consumer spending leaned towards convenient high-quality chilled foods. Underlying growth impacted by an ongoing deflationary environment and exit from certain low-margin business.
International
Revenues: +14% on LFL basis to GBP155.5m. Adjusted EBITDA up to GBP5.6m from 0.4m. In US and Asia “strong consumer macro trends of convenience and health underpinned by socio-economic and demographic factors” supported growth of fresh prepared foods. Sales boosted by acquisition of B. Robert’s Foods in US. In Asia, increased capacity and enhancing of technical capabilities lifted volumes, drove efficiencies and improved margins.
