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Bakkavör boss reports ‘strong margin’ and revenue growth

By Mike Stones , 09-Nov-2012
Last updated on 13-Nov-2012 at 14:28 GMT2012-11-13T14:28:13Z

Earlier this year, Tesco launched an Indian ready meal range, produced by Bakkavör

Earlier this year, Tesco launched an Indian ready meal range, produced by Bakkavör

The Bakkavör boss Agust Gudmundsson has reported, what he termed, “strong growth” in both revenue and margin revealed by the chilled own-label food company’s third quarter results released yesterday (November 8).

Like-for-like sales were up 7% for the quarter and 4% for the year-to-date, compared with the same periods of 2011.

Earnings before interest, tax, depreciation and amortisation reached £86M for the year-to-date, a rise of 5% on the same period of last year.

Ceo Gudmundsson said: “Against a challenging market environment, our continued focus on outstanding product innovation and targeted capital investment has led to strong growth in both revenue and margin in the quarter.”

Inflationary environment

He added: “Despite being cautious about the inflationary environment, we remain confident of achieving results in line with full year expectations.”

Bakkavör attributed the growth – achieved in a highly competitive market, characterised by “the consumer’s continued demand for promotions” – to product innovation and partnering customers to grow category share.

The firm repeated double digit growth in the pizza and desserts categories.

Bakkavör added that it had completed its financial restructuring programme and the relocation of its domicile from Iceland to London.

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