REYKJAVIK, 27 April 2006. Bakkavör Group (ICEX: BAKK) reported record operating profit of £18.5 million in the first quarter 2006. Shareholders' earnings amounted to £5.8 million and net sales were £258.6 million. Pre-tax profit amounted to £8.0 million and EBITDA amounted to £27.3 million, increasing by 236% from the same period last year. Cash generated from operations totalled £28.2 million and free cash generated by operating activities was £12.4 million. Earnings per share were 0.36 pence, increasing by 37% compared with the first quarter last year. Return on equity was 18.1% compared with 18.8% in the same quarter last year.
Business highlights in the first quarter 2006
* Shareholders' earnings £5.8 million - up 37% * Operating profit (EBIT) £18.5 million - up 159% * Pro-forma EBITDA - up 29% * Growth in like-for-like sales in underlying business 9.6% * EBITDA £27.3 million - up 236% * EBITDA ratio 10.6% * Cash generated from operations £28.2 million * Free cash generated by operating activities £12.4 million - up 211% * Equity ratio 14.0% - up from 12.4% at year end 2005 * Earnings per share 0.36 pence - up 37% * Return on equity 18.1% compared with 18.8% in the first quarter 2005 * 40% stake acquired in Creative Foods, a Chinese salad company, in co-operation with Glitnir * New Primebake, the leading UK bread manufacturer, acquired in April * Pre-payment of £30.0 million of long-term debt
Chairman's comments on the results
Ágúst Gudmundsson, Executive Chairman:
"These are the best first quarter results we have reported. Our performance in the UK continued to be strong and our operations in Continental Europe have improved considerably as we expected. We have now taken our first steps in the rapidly growing consumer markets in Asia with the acquisition of a 40% stake in the Chinese salad company, Creative Foods, in co-operation with Glitnir. Since the end of the quarter we have acquired the UK's leading chilled bread manufacturer, New Primebake Ltd., which will enable us to make full use of our existing capacity and strengthen our product portfolio in the UK. We will continue to explore opportunities to grow further in all our markets both organically and through strategic acquisitions."
The English version of the press release including tables can be downloaded from the following link: http://hugin.info/131/R/1047724/172401.pdf
The Interim Financial Statements for Q1 2006 can be downloaded from the following link: