Profit after tax £25.6 million
Business highlights for the half year and Q2 2007
* Turnover £723.0 million in H1, up 30% and £373.6 million in Q2, up 25% * Growth in like-for-like sales in underlying business 10.0% in H1 and 6.4% in Q2 * EBITDA £75.9 million in H1, up 12%, and £40.8 million in Q2, flat year-on-year * EBITDA ratio, net of agency sales change 11.2% in H1 and 11.7% in Q2 * Operating profit (EBIT) £56.8 million in H1, up 11%, and £31.4 million in Q2, down 4% * Profit after tax £25.6 million in H1, up 27%, and £15.7 million in Q2, up 11% * Shareholders' earnings £25.1 million in H1, up 27%, and £15.5 million in Q2, up 10% * Cash generated from operations £80.3 million in H1, up 29%, £42.1 million in Q2, up 24% * Free cash generated by operating activities £37.2 million in H1, up 28%, £20.3 million in Q2, up 23% * Equity ratio 19.1%, up from 18.2% at year end 2006 * Earnings per share 1.2 pence in H1, up 3% * Return on equity 20.3% compared with 25.2% in H1 2006 * Three acquisitions strengthened Bakkavör Group's operations in Continental Europe and China - 4G in France, Heli Food Fresh in the Czech Republic and Creative Food in China * Re-financing completed providing new £700 million banking facility on favourable terms
Ágúst Gudmundsson, Chief Executive Officer, said:
"A challenging trading environment, extreme weather conditions in the UK and the impact of a major product-recall affected Bakkavör Group's performance in the first six months of the year. However, our fresh prepared foods sales continued to outperform the total UK food market which is reflected in strong growth in the underlying business. In the first half of the year, we also strengthened our position through acquisitions in Continental Europe and China. Looking ahead, the trading conditions are expected to remain difficult with commodity price pressures coupled with rising inflation and interest rates. Furthermore, the unusually poor weather in the UK, will have an impact on the Group's performance for the remainder of the year. However, consumer demand for healthy and convenient quality foods remains strong and we believe that our products are well suited to continue to meet these consumer needs across our markets."
Ásdís Pétursdóttir Investor Relations, Bakkavör Group firstname.lastname@example.org Tel: +354 858-9715
To subscribe to Bakkavör Group's mailing list, please log onto: www.bakkavor.com/subscribe