Earnings release
Reykjavik, 28 April 2008
Bakkavör Group's Results for Q1 2008:
Operating profit £16.0 million in Q1 2008
• Turnover £377.3 million, up 8%
• Strong sales in Continental Europe, £36.6 million, up 9% on constant currency
basis
• Good sales growth in Asia, sales up 28%
• EBITDA £26.3 million, down 25%
• EBITDA ratio 7.0%
• Operating profit (EBIT) £16.0 million, down 37%
• Cash generated from operations £6.4 million
• Shareholders' earnings £0.7 million excluding loss on other financial assets
• Return on equity 1.1% excluding loss on other financial assets compared with
16.2%
• Earnings per share 0.02 pence excluding loss on other financial assets
• Strengthened global position with three acquisitions - in China, Hong Kong
and the USA
• Two acquisitions in April - in Italy and Hong Kong
• The Group today announced an economic interest in 10.9% shareholding in
Greencore Group PLC under CFD (Contract for Difference)
• Dividend paid on 15 April corresponding to 55% of issued share capital
Ágúst Gudmundsson, Chief Executive Officer:
“The Q1 results are disappointing. They are impacted by the continued tough
trading conditions with further increases in raw material costs compounded by
currency pressures. In addition, UK sales and performance were also heavily
affected by the restructuring of our ready meals operations that we started
last year, but which we expect to deliver long-term benefits. The current
economic climate is also believed to have affected sales volumes in the UK
fresh prepared foods market in Q1. Although we believe that 2008 will remain
challenging, we expect to return to sales growth in the UK in the second half
of the year. In Continental Europe sales were strong, growing 9% year-on-year
and performance in Asia remained robust. We see significant opportunities
outside the UK and remain focused on our expansion in Continental Europe, Asia
and the US to ensure the future growth of the Group. Reflecting this
commitment, we have acquired five businesses this year to date, in China, Hong
Kong, Italy, and the US. Furthermore, we announced today that we have an
economic interest in 10.9% shareholding in Greencore Group PLC. We view this as
a strategic holding that meets our business philosophy and clearly reflects our
commitment to the fresh prepared foods sector.
We are confident in the long-term prospects of the business. With our solid
operations and a strong competitive advantage in all of our markets, Bakkavör
Group is well positioned to take advantage of the increasing global demand for
fresh prepared foods and continue to grow profitably on a global scale.”
Further Information:
Ásdís Pétursdóttir, IR
Tel: +354 858 9715
About Bakkavör Group
Bakkavör Group is a leading international food manufacturing company
specialising in fresh prepared foods and produce. The Group operates 63
factories and employs around 20,000 people in 10 countries. The Group's Head
Office is in Reykjavík, Iceland, and the business is listed on the OMX Nordic
Exchange in Iceland (www.omxgroup.com/nordicexchange Ticker: BAKK).
The Group's vision is to be recognised and respected as the world's leading
fresh prepared foods and produce provider. Bakkavör Group has attained leading
market positions in its key market areas. In total, the Group makes over 6,000
products in 18 product categories, which are developed and sold predominantly
under its customers' own brands. In addition to the UK and Iceland, the Group
also has business operations in France, Belgium,Italy, Spain, South Africa,
China, the Czech Republic and the United States.
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investor.relations@bakkavor.com
