Bakkavör has reported positive group sales for the full-year ended 31 December 2008, up approximately 10 per cent on the previous year, with fourth-quarter sales increasing by 11 per cent.
Like-for-like sales remained 'broadly flat' for the year, the group reported, with fourth quarter like-for-like sales up by around 1 per cent, driven by the growth of Bakkavör's ready meal operations.
However, profitability had been affected by rising costs of utilities, poor summer trading and an increase in promotional spend, resulting in an EBITDA (excluding restructuring costs) of approximately £109m (€122.7m). Restructuring activity during the year totaled around £19m (€21.65m)in cashcosts, and €23m in asset-related impairments.
Bakkavör invested around £50m in capital expenditure during 2008, including the building of two new factories, which impacted the group's cash generation for the year - although the baord said that it believed the group was 'well placed' to return to good cash generation in 2009.
Meanwhile, the group added that it had retrieved £104m of the 150m cash deposit it had with the New Kaupthing bank - money that will be primarily used to repay debt in the group's Revolving Credit Facility. The full deposit is expected to be retrieved by mid-April this year.
