Fresh prepared food specialist Bakkavör has reported on a much-improved second quarter of the year, with net profit hitting £26.4m (€30.1m) from the net loss of £23.5m (€26.8m) recorded last year.
As the group predicted in its first-quarter results statement, earning before interest, taxation, depreciation and amortisation (EBITDA) improved by 5.7 per cent to £35.3m (€40.3m), with EBITDA margin standing at 8.7 per cent from 8.3 per cent last year.
UK fresh prepared food sales continued to accelerate through the three-month period, according to the Iceland-based group, up 7 per cent and boosted by a strong performance in ready meals.
'As anticipated when we reported our first-quarter results in May, Bakkavör has now returned to EBITDA growth following the successful implementation of our restructuring plan at the start of the year,' said CEO ágúst Gudmundsson. 'Furthermore, our cash position has improved considerably reflecting greater operational efficiencies, a marked improvement in profitability and greater control of working capital. As the benefits of these actions become more pronounced, we expect our cash generation to continue to grow throughout the second half of the year.
'Group sales in our UK fresh prepared food business are accelerating, with strong sales growth of 10 per cent in ready meals, one of our core drive markets,' he continued. 'This demonstrates the inherent strength of our market positions, our operational flexibility and ability to adapt to a fast-changing marketplace.
'We now have a stable platform from which to grow the business going forward and our revised EBITDA guidance for the full year reflects our renewed confidence,' Mr Gudmundsson added.
Looking ahead to the third quarter, Bakkavör said that it expected trading to remain strong, and was anticipating a 25 per cent increase in EBITDA. The forecast for the full year has been raised 20 per cent to £130m (€148.2m), the group added.
