Bakkavor Reports Robust Second-Quarter Growth

Private label food manufacturer Bakkavor has revealed that its second quarter (to 25 June) revenues rose 3.2% (3.6% LfL) to £438.7m, with robust growth in both its UK and International operations.

Adjusted EBITDA climbed 18% to £41.4m with margins up 110bps to 9.4% on the back of volume benefits, cost control and productivity improvements.

In its UK business, sales rose 2.8% on a like-for-like basis to £394.8m. The group, which supplies the major supermarket multiples, said it grew revenues with all four of its key
customers over the period and saw strong performances across all core categories.

Revenues from its International operations increased by 17.7% to £43.9m
with “good” performances in both of its core regions. On a like for like basis, which
excludes currency movements, revenue growth was 11.9%.

Commenting on the results, Agust Gudmundsson, Chief Executive Officer said:
“I am pleased to report another excellent set of results for the Group, with both strong revenue and EBITDA growth across our businesses. Although the UK is entering a period of some economic uncertainty following the recent EU referendum, we believe we are well placed to manage the challenges that may lie ahead. We are therefore planning to continue our accelerated capital investment programme to support our ongoing growth with key customers and drive further performance benefits.”