Bakkavör has reported on a third quarter (Q3) of the year in which profit performance and cash flow improved on the previous year, with earnings before interest, taxation, depreciation and amortisation (EBITDA) climbing 45 per cent to £45.2m (€50.1m) from £31.1m (€34m) last year.
UK fresh prepared food sales continued to accelerate through the three-month period, the group said, increasing by 7 per cent, while cash flow from operations excluding one-off restructuring costs jumped 86 per cent to £66.5m (€73.7m).
The results boosted net profit for the first nine months of 2009 to £4.2m (€4.6m), compared with a loss of £55.9m (€62m) in the same period of 2008, with the group on track to hit its full-year EBITDA target of £130m (€144.1m).
'With our EBITDA up 45 per cent in Q3 2009, our results demonstrate that we are achieving a strong recovery in the group's performance and are well on track to achieve our full-year forecast,' said group CEO ágúst Gudmundsson. 'We are once again generating good cash flow, reflecting the improved profitability of the business and greater control of working capital.'
Mr Gudmundsson said that Bakkavör's improved profitability was underpinned by increasing sales volumes and improved operational efficiencies, achieved despite the challenging trading environment.
Additionally, he noted, the group had made 'strong headway' in its core UK fresh prepared food business, while also making progress in discussions with lenders to Bakkavör's Icelandic holding company, with a conclusion expected to be announced soon.
'Whilst we expect trading conditions to remain challenging, we are very confident that the actions we have taken and the fundamental growth proposition we offer will drive significant profit growth in years to come,' Mr Gudmundsson said.
