# Bakkavor Group plc Robust performance in challenging market conditions

- Link: https://www.directorstalkinterviews.com/bakkavor-group-plc-robust-performance-in-challenging-market-conditions/412768294
- Published: 2019-02-28T08:10:03+00:00
- Author: Charlotte Edwards

**Bakkavor Group plc** (LON:BAKK), the leading provider of fresh prepared food, 
today announced its full year unaudited results for the 52-week period ended 29 
December 2018.

HIGHLIGHTS

· Group revenue increased 2.2% to £1,855.2m, up 3.2% on a like-for-like1 basis

– positive performance in the UK despite a tough market, with like-for-like1 growth
of 1.8%

– accelerated growth in both the US and China, with a like-for-like1 increase of
16%

· UK adjusted EBITDA1 margin maintained, with Group adjusted EBITDA1 up 0.6% to 
£153.5m in a year of cost inflation and significant transition in the US

· All four key development projects on track – two new US sites opened, Shanghai
construction completed and expansion of UK desserts site progressing well

· Acquisition of Haydens Bakery Limited further increases capacity and capability
in our desserts category and already delivering synergy benefits

· Final dividend of 4p per share proposed, giving a total dividend of 6p per share
for the year

  |

£ million

  |

FY 2018

  |

FY 2017

  |

Change

  |  
 |

Group revenue

  |

1,855.2

  |

1,814.8

  |

2.2%

  |  
 |

Like-for-like revenue^(1)

  |

1,842.0

  |

1,784.6

  |

3.2%

  |  
 |

Adjusted EBITDA^(1)

  |

153.5

  |

152.6

  |

0.6%

  |  
 |

Adjusted EBITDA^(1) margin

  |

8.3%

  |

8.4%

  |

(10) bps

  |  
 |

Profit before tax

  |

77.9

  |

39.0

  |

38.9

  |  
 |

Basic EPS

  |

11.6p

  |

5.8p

  |

5.8p

  |  
 |

Adjusted EPS^(1)

  |

14.7p

  |

13.3p

  |

1.4p

  |  
 |

Free cash flow^(1)

  |

55.1

  |

71.1

  |

(16.0)

  |  
 |

Net debt

  |

306.6

  |

266.6

  |

(40.0)

  |  
 |

Total dividend proposed

  |

6p

  |

n/a

  |

n/a

  |

 

> ** Agust Gudmundsson, Bakkavor Group Chief Executive Officer, said:** “We delivered
> a robust performance in 2018, successfully driving growth across our UK and International
> businesses against a backdrop of significant market challenges. This reflects 
> our market-leading expertise in producing great tasting fresh food, the quality
> of our people and our strong partnerships with customers.
> “Subdued consumer confidence and inflationary pressures have continued into 2019,
> and therefore we remain cautious and expect little improvement in underlying market
> conditions. Consequently, we expect limited growth in the UK and a corresponding
> decline in the Group’s EBITDA margin in the first half of the year.
> “However, in the second half, we anticipate an uplift in UK revenues as we benefit
> from recently secured new business. Given this additional volume, together with
> the actions we are taking to protect profitability, we expect a significant improvement
> in our trading in the second half of the year and our full year Group performance
> to be broadly in line with 2018.
> “Looking further ahead, we remain confident that our strategy, combined with our
> scale and expertise leaves us well-placed to capitalise on further growth opportunities
> within the attractive FPF market, both in the UK and overseas.”

Share on: