Bakkavör Group's half year results 2007:
Profit after tax £25.6 million
Business highlights for the half year and Q2 2007
• Turnover £723.0 million in H1, up 30% and £373.6 million in Q2, up 25%
• Growth in like-for-like sales in underlying business 10.0% in H1 and 6.4%
in Q2
• EBITDA £75.9 million in H1, up 12%, and £40.8 million in Q2, flat
year-on-year
• EBITDA ratio, net of agency sales change 11.2% in H1 and 11.7% in Q2
• Operating profit (EBIT) £56.8 million in H1, up 11%, and £31.4 million in
Q2, down 4%
• Profit after tax £25.6 million in H1, up 27%, and £15.7 million in Q2, up
11%
• Shareholders' earnings £25.1 million in H1, up 27%, and £15.5 million in
Q2, up 10%
• Cash generated from operations £80.3 million in H1, up 29%, £42.1 million
in Q2, up 24%
• Free cash generated by operating activities £37.2 million in H1, up 28%,
£20.3 million in Q2, up 23%
• Equity ratio 19.1%, up from 18.2% at year end 2006
• Earnings per share 1.2 pence in H1, up 3%
• Return on equity 20.3% compared with 25.2% in H1 2006
• Three acquisitions strengthened Bakkavör Group's operations in Continental
Europe and China - 4G in France, Heli Food Fresh in the Czech Republic and
Creative Food in China
• Re-financing completed providing new £700 million banking facility on
favourable terms
Ágúst Gudmundsson, Chief Executive Officer, said:
"A challenging trading environment, extreme weather conditions in the UK and
the impact of a major product-recall affected Bakkavör Group's performance in
the first six months of the year. However, our fresh prepared foods sales
continued to outperform the total UK food market which is reflected in strong
growth in the underlying business. In the first half of the year, we also
strengthened our position through acquisitions in Continental Europe and China.
Looking ahead, the trading conditions are expected to remain difficult with
commodity price pressures coupled with rising inflation and interest rates.
Furthermore, the unusually poor weather in the UK, will have an impact on the
Group's performance for the remainder of the year. However, consumer demand for
healthy and convenient quality foods remains strong and we believe that our
products are well suited to continue to meet these consumer needs across our
markets."
