FDBusiness.com

First Half Profits Fall at Bakkavor Group

 Breaking News
  • Coca-Cola HBC to Acquire Italian Water and Sparkling Beverages Company in €88 Million Deal Coca‑Cola HBC has agreed to acquire Acque Minerali, a privately-held natural mineral water and adult sparkling beverages business based in Italy. The acquisition is being made in conjunction with The Coca-Cola Company, in-line with previous similar acquisitions. The total enterprise value payable by Coca‑Cola HBC and The Coca‑Cola Company, subject to customary closing adjustments, amounts [...]...
  • Britvic Signs Up to Science Based Targets Initiative Britvic has pledged to pursue bolder greenhouse gas (GHG) emission reduction targets by signing up to the Science Based Targets initiative. Britvic joins around 600 leading companies from around the world in formally committing to independently verified science-based GHG emission reduction targets. Britvic’s A Healthier Everyday sustainability strategy recognises climate change as one of the biggest threats facing [...]...
  • Marks & Spencer Partners Infarm to Bring Urban Farming to London Stores M&S Food is partnering with infarm – one of the world’s most advanced urban farming platforms – to deliver a range of fresh produce grown and harvested in a selection of the retailer’s London stores. Customers will now find a range of fresh herbs – including Italian, Greek and Bordeaux Basils, Mint, Curly Parsley and Mountain [...]...
  • Coca-Cola European Partners to Remove 4,000 Tonnes of Single-use Plastic by Swapping Shrink Wrap For Cardboard in Western Europe Coca-Cola European Partners, will be replacing plastic shrink wrap with cardboard for its can multipacks across Western Europe, removing approximately 4,000 tonnes of single-use plastic per year across the region. This is the latest move in Coca-Cola’s commitment to tackle packaging waste and remove all unnecessary single-use plastic from its secondary packaging. Plastic shrink wrapping is used [...]...
  • EU Leading in Global Agri-food Trade The EU has been confirmed for yet another year in its position as the largest global exporter of agri-food products, with sales reaching €138 billion in 2018. Agriculture products represent a solid share of 7% of the value of EU total goods exported in 2018, ranking fourth after machinery, other manufactured goods and chemicals. Agriculture and [...]...

First Half Profits Fall at Bakkavor Group

First Half Profits Fall at Bakkavor Group
September 12
11:57 2019

Bakkavor Group, the leading provider of fresh prepared food in the UK with a growing international presence in the US and China, has reported a sharp fall in operating profit to £29.3 million for the 26-week period ended 29 June 2019, compared to £54.1 million in the prior period. Group revenue was up 1.4% at £923.0 million, with like-for-like revenue up 2.0%, in the first half of 2019.

Group adjusted EBITDA pre IFRS 16 for the first half of 2019 was £73.5 million, down 6.5% with a margin of 8.0%, impacted by lower volumes and the losses recorded prior to closure of a UK meals site in April 2019. In addition to the lower trading performance, £8.3 million of ongoing start-up losses for new sites was incurred and also exceptional items increased by £9.9 million to £13.1 million due to disruption and restructuring costs.

Whilst trading in the UK remained challenging, especially against a tough comparative, the International business performed well. As expected, trading this year in the UK will be weighted towards the second half as new business comes on stream and raw material pricing eases.

Agust Gudmundsson, chief executive of Bakkavor Group, says: “During a challenging period, I’m pleased by the resilience we’ve shown across the business to deliver a solid first half performance. While the trading environment in the UK is still uncertain, we remain positive of our long-term prospects and the demand for fresh prepared food. Our UK operations have never been stronger and we’re the clear market leader across all four of our core categories. I’m encouraged by developments made across our US business; improving efficiencies, streamlining our customer proposition and building sales across new sites. Our business in China continues to go from strength to strength, expanding both our customer base and product offering.”

He continues: “Despite a subdued start to the second half, we currently expect an uplift in performance, boosted in the UK by the impact of new business and an easing of raw material inflation. Our International business is making further progress and therefore the Group remains confident in delivering full-year performance broadly in line with 2018. Looking further ahead, we believe that our strategy, combined with our scale and expertise, leaves us well placed to capitalise on future growth opportunities.”

Bakkavor Group is the number one by market share in the UK in the four FPF product categories of meals, salads, desserts and pizza & bread. Its customers include some of the UK’s leading grocery retailers, including Tesco, Marks & Spencer, Sainsbury’s and Waitrose. Bakkavor was founded in 1986 and has its headquarters in London. The group has over 19,000 employees and operates 25 factories in the UK, five in the US and nine in China.

 

About Author

mike

mike

Related Articles

Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • October 1, 2019PPMA Total Show
  • October 17, 2019Future Food-Tech
  • November 18, 2019Plastics Caps and Closures Conference 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber

Subscribe Here



Advertisements