Iceland-based food group Bakkavor has pointed to the “toughest trading conditions in decades” after posting a 6% drop in quarterly profits.
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The ready meals-to-salads group saw third-quarter operating profit fall 6% to GBP30.1m (US$61.8m) during the three months to the end of September. Despite the fall in profits, turnover rose 13% to GBP375.7m.
“Fundamental changes in world supply are resulting in global commodity price increases, which are having a significant impact on our business,” said Bakkavor CEO Ágúst Gudmundsson.
Over the first nine months of the year, underlying revenue rose 8.6%, which has driven a 4% increase in profits to GBP86.9m.
Gudmundsson pointed to recent acquisitions including Exotic Farm Produce Group in the UK and Heli Food Fresh in the Czech Republic as grounds for optimism.
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By GlobalData“The group’s long-term prospects are good,” Gudmundsson said. “The demand for fresh prepared foods is growing around the world and we will continue to take advantage of favourable market trends and further develop our business on a global scale.”
