International food manufacturer Bakkavör has seen revenues rise 3.2% to £438.7 million in its second-quarter (Q2) results for the 13 weeks ended 25 June 2016, compared with the same 2015 period.
Like-for-like revenue rose 3.6% from £422.8m to £437.9m, while adjusted ebitda jumped 18% to £41.4m, from £35.1m in the same period.
Meanwhile, revenues in its UK business increased to £394.8m from £387.8m, a difference of 1.8%. Adjusted ebitda in the UK rose 12% from £34.3m to £38.3m in the period. The group attributed this performance to higher volumes and its “exit from certain low-margin business” along with “a continued focus on productivity projects”. It added that the improvement in profitability was encouraging, especially given the ongoing pressure on labour costs in the UK, “exacerbated by the introduction of the National Living Wage in April”.
In a statement the company said: “Our commitment to driving innovation is fundamental to the group’s position as the UK’s leading own-label fresh prepared food manufacturer. We opened our new central development kitchen in April, giving our chefs another world-class facility to create new and inspiring products and showcase the latest food trends and tastes to our customers.”
Commenting on the results, Agust Gudmundsson, chief executive officer, said: “I am pleased to report another excellent set of results for the group, with both strong revenue and ebitda growth across our businesses. Although the UK is entering a period of some economic uncertainty following the recent EU referendum, we believe we are well placed to manage the challenges that may lie ahead.”
The company is planning to continue its accelerated capital investment programme to support its ongoing growth with key customers and drive further performance benefits.
2016 marks the 30th anniversary of Bakkavör being founded by Agust and Lydur Gudmundsson in Iceland. The company supplies fresh prepared foods, and employs over 18,000 people globally, producing over 5,000 products in 18 different categories.
In June 2016, Bakkavör planned to create 470 new roles in its deli and desserts businesses.