Bakkavör Group: posts results 2009

Reykjavik / IS. (bkg) «Our 2009 results demonstrate a strong improvement in profit delivery, good sales growth in our key UK fresh prepared foods business and a return to significant cash generation. After two years of considerable effort to return the business to more expected performance levels we are very optimistic about our future prospects», says August Gudmundsson, Chief Executive Officer of the Islandic Bakkavör Group in a statement. Highlights:

• Ebitda up significantly 24,6 percent to 135,1 million GBP in 2009, exceeding the Group´s target by 5,1 million GBP
• Much improved Ebitda margin in 2009 at 8,2 percent compared to 6,7 percent in 2008 – improved further in Q4 to 8,7 percent
• Significant profit turnaround of 142,4 million GBP in the year, with loss for the year of 11,8 million GBP compared with a 154,2 million GBP loss in 2008
• Considerable increase in free cash flow to 68,3 million GBP in the year compared with a 34,0 million GBP outflow last year, an improvement of 102,3 million GBP
• Operational restructuring activity undertaken in 2008 to 2009 significantly improved Group profitability – performance in UK fresh prepared foods business particularly strong, five percent sales growth
• Ebitda forecast to amount to about 29 million GBP in Q1/2010, up 53 percent. This will result in Ebitda twelve-month run-rate of about 145 million GBP
• The Group has been fully refinanced following an agreement with the lenders to the Icelandic holding company

Gudmundsson: «I am also pleased to report that the Group has now been fully refinanced following an agreement with the lenders to the Icelandic holding company. This agreement de-leverages the Group considerably with around half of the debt converting into equity and the remainder extended until 2014. Following the successful refinancing of the operating businesses early last year the Group has a secure financial platform from which to grow».
Info: «Bakkavör Group Annual and Q4 Results 2009» complete press release (PDF).