Bakkavor Group, the UK-based provider of freshly prepared foods, has posted a 1.4% year-on-year growth in group revenue, to £923.0 million (€1.03 billion), in the first half of its financial year.
Commenting on the company's performance, chief executive, Agust Gudmundsson, said, "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 freshly prepared food."
Its like-for-like revenue grew 2.0% to £877.9 million (€980.08 million) in the first half from £860.9 million (€961.10 million) in the same period last year.
Divisional Performance
In the UK, which the group described as a 'very challenging market', like-for-like group revenue was up 0.7% to £772.2 million (€862.07 million).
In the international market, the company's like-for-like group revenue was up 12.7% to £105.7 million (€118.00 million).
Gudmundsson added, "Our UK operations have never been stronger and we are 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."
Operating Profit
The company's pre-IFRS adjusted EBITDA was down 6.5% to £73.5 million (€82.05 million), while operating profit declined to £29.3 million (€32.71 million) during the period, from £54.1 million (€60.4 million) last year.
It was impacted by £13.1 million (€14.62 million) of exceptional costs and £8.3 million (€9.27 million) of start-up losses for new sites, Bakkavor said.
During this period, the company acquired dessert maker Blueberry Foods and announced the closure of its Freshcook meals facility in Lincolnshire.
Outlook
Commenting on the company's outlook, Gudmundsson said, "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."
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: The European Supermarket Magazine.
