Shareholders' Earnings £67.6 million
REYKJAVIK, 31 January 2007. Bakkavör Group (ICEX: BAKK) reports operating profit of £113.9 million in 2006 and £30.7 million in Q4. Sales totalled £1.2 billion in 2006 and £329.2 million in Q4. EBITDA increased by 72% in 2006, amounting to £147.8 million. In the quarter, EBITDA amounted to £39.3 million, increasing by 38%. Shareholders' earnings totalled £67.6 million in 2006 and £32.8 million in Q4. Cash generated from operations amounted to £165.1 million and free cash generated by operating activities was £93.6 million. Earnings per share were 3.4 pence, a 74% increase, and return on equity was 37% compared with 30% in 2005.
Business Highlights 2006
" Four UK acquisitions strengthened the Group's position in key product categories
" Operations in Continental Europe turned into profitable position
" Successful entry into the Chinese market with an acquisition in co-operation with Glitnir Bank
" Shareholders' earnings £67.6 million in 2006, up 111%, and £32.8 million in Q4, up 191%
" Operating profit (EBIT) £113.9 million in 2006, up 71%, and £30.7 in Q4, up 47%
" Growth in like-for-like sales in underlying business 10% in 2006
" EBITDA £147.8 million in 2006, up 72%, and £39.3 million in Q4, up 38%
" EBITDA ratio 12.1% in 2006 and 11.9% in Q4
" EBITDA ratio, net of agency sales change 12.6% in 2006 and 12.7% in Q4
" Pro-forma EBITDA in 2006, up 20%
" Cash generated from operations £165.1 million, up 59%
" Free cash generated by operating activities £93.6 million, up 43%
" Equity £241.4 million compared with £127.4 million at year end 2005, up 90%
" Equity ratio 18.2%, up from 12.4% at year end 2005
" Earnings per share 3.4 pence, up 74%
" Return on equity 37% compared with 30% in 2005
" Board of Directors will propose the payment of dividends at the Group's AGM in March which corresponds to ISK 0.5 per share or 50% of issued share capital
Ágúst Gudmundsson, Chief Executive Officer, said:
"We are pleased to report a strong performance in 2006. We strengthened our position in key product categories in the UK with four acquisitions and turned our Continental European operations back into a profitable position. We also took our first steps in Asia by acquiring a stake in a Chinese salad company. Improved efficiencies and profitability were achieved as we remained focused on further integration of our businesses, extracting synergies and taking advantage of economies of scale. The outlook for 2007 is good - we intend to continue to lead the consolidation in the UK market as well as take advantage of favourable market developments in Continental Europe. Furthermore, we will explore a wealth of opportunities that we have identified in the fast growing food markets across Asia.
